Japan's Taisho Pharma looks set to acquire India's Paras Pharma, says local report

Unconfirmed speculation suggests that Japan's Taisho Pharmaceuticals (4535:JP) is now the front-runner to buy a majority stake in India’s Paras Pharmaceuticals by offering over six times the annual sales of the drugmaker. The news is the result of comments by an industry executive familiar with the development reported by the Economic Times of India.

Though discussions with Taisho have not gone to the extent of signing a so-called term sheet agreement, it is now the most likely buyer, unless a competitor outbids it, an executive from a PE firm said, asking not to be named. A term sheet is an agreement which describes the broad structure of a proposed deal, but may not be legally binding.

Taisho has said it is interested in entering the Indian market, Hiroya Hamano, a company spokesman, said in a telephone interview with Bloomberg. However, he declined to comment on an Economic Times report that Taisho may buy a stake in India’s Paras Pharmaceuticals Ltd.