FIPB to decide on GSK, other pharma FDI proposals

Tags: FDI, FIPB, GSK, Pharma, Economy
FIPB will take up tomorrow GlaxoSmithKline's Rs 6,400 crore FDI plan, the largest foreign

RELATED ARTICLES

investment proposal in the pharma sector this fiscal.

There are seven other FDI proposals related to the pharma sector that are scheduled to be taken up by the Foreign Investment Promotion Board (FIPB), headed by Economic Affairs Secretary Arvind Mayaram.

According to sources, the Singapore subsidiary of the UK- based GlaxoSmithKline proposes to buy 24.33% stake or 2.06 crore equity shares in GlaxoSmithKline Pharmaceuticals Ltd through an open offer.

The acquisition would result in foreign exchange inflows to the tune of Rs 6,400 crore, they added.

FDI inflow in the pharma sector during the April-October period totalled Rs 5,956 crore ($1.08 billion).

In September, the government cleared the Rs 5,168-crore deal of the US-based Mylan Inc for acquiring Bangalore-based pharma firm Agila Specialties, a subsidiary of Strides Arcolab.

In 2008, Japanese firm Daiichi Sankyo had bought out the country's largest drug maker Ranbaxy for $4.6 billion. US-based Abbot Laboratories had acquired Piramal Health Care's domestic business for $3.7 billion.

Other pharma sector proposals that are on FIPB agenda for January 13, include Laurus Labs (Hyderabad), Hospira Pte Ltd (Singapore) and KKR Floorline Investments PTE (Singapore).

The FIPB is taking up the pharma sector proposals against the backdrop of the government deciding to retain the policy of allowing 100% foreign investment in the existing pharma firms, brushing aside concerns about non-availability of affordable drugs in view of MNCs takeovers.

India allows 100% FDI in pharma sector through automatic approval route in the new projects, but foreign investment in the existing companies are allowed only through the FIPB approval.

In total, the FIPB would consider 22 FDI proposals across various sectors on Monday.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Media obsession with his layoff smacks of lack of focus

    Pretty much like his abrupt vanishing act had done 50-odd days ago, Congress vice president Rahul Gandhi’s return on Thursday from a long and myster

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Varun Dutt

<b>Riskfactor</b>: Oblivious to reality

The hostile media effect, originally deemed the hostile media phenomenon, ...

Zehra Naqvi

Sensual wordplay

The student of literature looks for form and structure. The ...

Bubbles Sabharwal

The bitter cold heart of life

Life has a heart just as we do. Most times ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture