Ranbaxy shows interest in Merck KGaA's generic business

Following the announcement by German pharmaceutical company Merck KGaA that it was exploring the sales of its generics business, India's leading drugmaker, Ranbaxy Laboratories, has expressed an interest in acquiring the operation.

In an interview with the Business World magazine, Ranbaxy's chief executive, Malvinder Singh, stated: "this is a leading global generic company and it is certainly an interesting opportunity. We would definitely be interested in an asset like this."

However, this acquisition - which would put Ranbaxy in the number three spot in the global copy drug market - would not come cheaply, with a value of $4.0-$5.0 billion put on the generics unit. In any event, this will also attract offers from the likes of Israel's Teva Pharmaceutical Industries and Swiss drug major Novartis.