First Ranbaxy, analysts wonder who's next?

HIRAL VORA AND BHARGHAVI NAGARAJU MUMBAI — Daiichi Sankyo's $4.6-billion (U.S.) bid for control of India's Ranbaxy Laboratories Ltd could be the trigger for foreign pharmaceutical companies to step up the hunt for low-cost Indian drug makers for fear of being left behind. Global demand for cheaper generic medicines produced by firms such as Ranbaxy is booming as countries battle rising health care costs. Diversifying into the business would boost revenues for bigger firms, helping them to offset the growing cost of developing new drugs and fend off rivals. Indian drug makers, who until recently were on an acquisition spree of their own, are now seen as attractive targets by foreign firms seeking entry to the fast-growing market, their research and development expertise and a low-cost manufacturing base. Ranbaxy's larger,... [read full story]