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US firm denies takeover bid by Ranbaxy

US firm denies takeover bid by Ranbaxy

US-based pharmaceutical firm URL/Mutual has strongly refuted that it was a target of acquisition by any company.

New Delhi: US-based pharmaceutical firm, URL/Mutual, the subject of speculation of a takeover bid by India's largest drug maker Ranbaxy Laboratories, has strongly refuted that it was a target of acquisition by any company.

"No one is in any stage of due diligence with us," Rich Foster, URL/Mutual Pharmaceuticals' Vice-President of Marketing and Strategic Analysis said.

Denying market reports that Ranbaxy was eyeing to takeover the company, Foster said, "Our CEO had not talked to a Ranbaxy official for 10 years".

He also asserted that the company was not under any margin stress and was not on the block.

"We have five years of increasing revenue, gross margin, gross margin percentage and EBITDA. We have no net debt and have a positive cash flow," Foster said.

On reports that the company became an interesting option for Ranbaxy because of its range of Abbreviated New Drug Applications (ANDA) for injectible products, he said, "We are not an injectable company and do not have a pipeline of them."

When contacted Ranbaxy officials declined to comment on "market speculation". The company has, however, stated in the past that inorganic growth through acquisitions was very a part of its strategy to scale up operations.

first published:October 02, 2006, 15:36 IST