Could Biogaran, French leader in generic medicines, go under foreign flag? In any case, this is the information given by The echoes and taken over by Capital. The parent company, Servier laboratories, is indeed seeking to separate from its subsidiary.
In the running to take over Biogaran we certainly find a French industrialist in tandem with BC Partners. But their offer of around 700 million euros does not seem up to par. Which opens the way for the Indians Torrent Parmaceuticals and Aurobindo Pharma.
Relocate production to India?
According to Capital And The echoes, these would be likely to relocate production to India, even though Biogaran is currently only present on the French market. Today, 50% of the 350 million boxes produced annually are in France and 90% in Europe. But production costs are always lower in India and China of course. Enough to increase Biogaran’s already strong growth of 8.8%, or 1.1 billion euros.
While the government is doing part of its communication on the reindustrialization of France, the news of a possible departure of Biogaran can only be bad news for the executive. To the extent that The echoes wonders if Bercy could not take a closer look. The ministry tells the newspaper “to follow the file”, without further details. Capital specifies that the generic medicines sector is difficult because prices are set administratively, and certain increases requested by Biogaran have been refused.