Monday, July 2, 2007

Max India eyes control of two CROs in US

Delhi-based healthcare and insurance company Max India is looking at acquiring two clinical research organisations (CRO) in the US. Max India joint MD Anantharaman said, “We are looking at either picking up majority stake or full control in 2 CROs in the US, which have sales order of $25-$50 million. We have identified few CROs and have initiated direct talks with a couple of them. We may appoint investment bankers for a bigger deal.”

The company would fund the buy out from the Rs 1,000 crore fund raised through qualified institutional placements. The acquition may happen after a year, he added.

The strategic tie-ups are likely to materialise in the next 2-3 months. Currently, Neeman Medical International, Max’s clinical research company, has a business development subsidiary in the US and regional offices in Europe and Latin America.

The company sees two benefits of having its presence in the US. First, its CROs in the US will outsource all its back-end work to its Indian operations. Secondly, having a subsidiary in the US would allow the company to outsource its mandatory trails in the US to its own company.

(Source: Economic Times)

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