Summary
Acquisitions of various Indian generic pharmaceuticals is likely on the horizon for brand name manufacturers. However, this is not an immediate concern. I would see more consolidations in the US and other Western markets first.
Analysis
I would see more consolidations in the US and other Western markets
first. These would revolve around vertical mergers, as evidenced by Roche-DNA this year and Pfizer and Wyeth, and horizontal mergers,
down to the bulk chemical suppliers. I do not foresee the retailers, PBM markets and wholesalers, as McKesson, Cardinal Health or Amerisource Bergen getting into this venue.
Another incentive for brand name manufacturers getting into acquisitions of generic pharma would be to leverage the usage of authorized generics, as already many have. However, there is a high chance that this would be thwarted by the Obama's administration.
Last, lower valuations in the US market and Western European markets have sent generic manufacturers to better levels for acquisitions. Brand pharma is more likely to absorb some in those areas than in India.
Nonetheless, the Indian market is ripe and if valuations permit, they may be absorbed. Just very unlikely.
