Foreign direct investment in Indian pharma sector causing concern

The spate of mergers and acquisitions (M&As) in the Indian pharma sector continues unabated. As foreign players continue to scout for potential Indian targets to complement their existing offerings and provide a platform for incremental growth, the bogey of drug multinational companies (MNCs) attacking India's ability to produce low-cost quality generic drugs has once again come to the fore, reports The Pharma Letter’s India correspondent.

As domestic private equity major ChrysCapital is set to pick up a 10% stake in Mankind Pharmaceuticals, with GIC of Singapore and CPPIB of Canada, for $350 million, the UK’s AstraZeneca has announced its plans to invest $90 million in India over the next five years.

Fosun International, the Chinese conglomerate known to be aggressive on the international M&A circuit, is the latest entrant to join a bidding war to take control of India's second largest healthcare provider, Fortis Healthcare.