The betapharm Acquisition: DRL's Inorganic Growth Strategy in Europe
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DRL's commitment to corporate social responsibility was also a factor that clinched the deal in its favor, despite not being the highest bidder. However, some analysts opined that DRL had paid too much for the acquisition of betapharm. There were also doubts if DRL could get enough leverage from the acquisition as betapharm was reportedly emerging from a lean period. They felt that if the deal did not produce results, it would significantly impact DRL's financial performance. Another problem was that the German government modified its policy regarding generic drugs shortly after the acquisition. This impacted the margins of most generic drug companies, including betapharm. On account of this change, DRL shelved its plans for further acquisitions in the European market.
» Understand the issues and challenges faced by an Indian pharmaceutical company in growing its business in the international market.
betapharm Arzneimittel GmbH, Dr. Reddy's Laboratories Ltd., Mergers and Acquisitions, Strategic Management, German Pharmaceutical Generic Market, Value Creation, Drug Discovery and Development, Low-Cost Manufacturing Outsourcing, Corporate Social Responsibility, Ranbaxy Laboratories Limited, Political and Regulatory Environment, Economic Optimisation of Pharmaceutical Care Act, International Market Expansion, Globalization, Post-merger Integration Plan
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