Torrent Pharmaceuticals Limited announced that the USFDA has issued a favorable Establishment Inspection Report (EIR) for its Dahej, Gujarat manufacturing facility. This follows a re-inspection in May 2023, which resulted in a revised classification of “Voluntary Action Indicated (VAI),” signifying improved conditions. As a result, Torrent can now pursue approvals for filed Abbreviated New Drug Applications (ANDAs), bolstering its growth prospects in the US market. The Dahej facility produces Active Pharmaceutical Ingredients (APIs) and formulations for international markets.
Eye on domestic acquisitions:
Torrent Pharma is reportedly considering an interest in acquiring Cipla, a larger pharmaceutical company. Torrent has a history of domestic acquisitions, such as Elder Pharma and Unichem. Their previous acquisition of Curatio Healthcare for ₹2,000 crore was seen as an investment in the domestic pharmaceutical and cosmetic dermatology markets. If Torrent pursues Cipla, it would involve a significant stake and could trigger an open offer and management control change. While they may seek investors for financial support, Torrent Pharma is expected to have no trouble assembling the necessary resources. Acquiring Cipla would provide Torrent with a stronger foothold in the Indian market, particularly in areas like respiratory and diabetes products, as well as North America and South Africa, where Cipla is prominent. Leveraging Cipla’s legacy of providing affordable drugs globally would be a major advantage.
On Thursday, Torrent Pharma’s shares closed at Rs.1965, a 1.37% increase on NSE.