Cipla on the block: Who's a better fit and what it means for shareholders?

As per IIFL Securities, Cipla with a dominating market share of 7% and 23% in acute therapies like respiratory and anti-infectives, respectively, would strengthen Torrent's position in these

India’s third-largest pharmaceutical company by revenue, Cipla, is up for grabs in a three-way fight between Torrent Pharmaceuticals, Dr. Reddy’s Laboratories (DRL) and private equity (PE) giant Blackstone. 

Analysts say it is more likely for a strategic investor like Torrent or DRL to acquire Cipla than a PE firm, which may not derive healthy returns at Cipla’s current market price (CMP) after the recent gains. 

Torrent vs DRL

The two pharma majors are reported to be eyeing the entire 33.47 per cent promoter stake in Cipla, held by the Hamied family. A successful buyout will further trigger an open offer