Pfizer to submit Ratiopharm bid

The New York-based pharmaceuticals company Pfizer will bid up to Ôé¼3 billion ($4.08 billion) for the German generic drug maker Ratiopharm Group International, according to reports.  Pfizer is competing with Teva Pharmaceutical Industries of Israel and Actavis, the Iceland-based generic company, to win control of Ulm, Germany-based Ratiopharm, which is being sold as a result of debts assumed by its founder, the late Adolf Merckle. The three companies presented their case on issues such as manufacturing and employment to Ratiopharm's management this week and will now be given access to sensitive information about the company. The company is making its full-year audited accounts available by mid-March, with the aim of concluding a deal by the end of the month. The purchase of Ratiopharm would diversify PfizerÔÇÖs income stream away from the new drug market, and would also expand the companyÔÇÖs generic drug division to about $11 billion in revenue, which would be close to the $13.9 billion revenue made by Teva last year. A takeover by Pfizer would also allow the US company to further expand into emerging markets. It is believed that PfizerÔÇÖs takeover plan is expected to include additional funding for research and development at Ratiopharm. The news is the latest in a series of acquisitions made within the pharmaceutical industry. This week Merck of Germany announced plans to buy Millipore, a provider of tools and services for bioscience companies, for $7.2 billion. The Japanese drug maker Astellas Pharma also revealed this week that it had made a $3.5 billion hostile bid for OSI Pharmaceuticals. Analysts have expressed doubts that IcelandÔÇÖs Actavis Group, is likely to win the bid for Ratiopharm, pitting Pfizer directly against IsraelÔÇÖs Teva. Ratiopharm is EuropeÔÇÖs leading generics brand, with its products being sold in over 35 countries worldwide. Pfizer is the number one pharmaceutical company by sales in the world. Last year, it acquired its rival, Madison, New Jersey-based Wyeth, for $68 billion.