MSN Labs eyes acquisitions in CDMO, generics space

Hyderabad: The $1.2 billion MSN Group is scouting for big acquisition targets in the contract development & manufacturing organization (CDMO) as well as generics space in the therapeutic areas where it has gaps in its portfolio, Dr MSN Reddy, founder, chairman & managing director, MSN Group, said here on Friday.
Indicating that the group is open to acquisitions as big as Rs 2000 crore, he said the privately held MSN Labs has "very ambitious" plans to grow the business and is open to acquiring a big company. "We are looking for opportunities," he said on the sidelines of the launch of MSN Group's realty arm MSN Realty's first project.
Pointing to the immense potential for Indian pharma companies in the CDMO space amid the raging US-China tariff wars, said while earlier drug innovator companies were focused on China they are now looking at alternatives and this offers huge potential for Indian companies provided they are able to ensure IP protection and quality.
He also said with the ongoing tariff wars and threat of tariffs on the pharma sector, Indian companies should look at emerging markets such as India, Latin America, Mexico, China and CIS countries for better margins on generics. Currently US is the largest market for Indian generics players but margins are quite slim, he said.
Set up in 2003, Hyderabad-based MSN Labs has 15 API and six finished dosage facilities across India & USA. It also has an integrated R&D center for both API and formulations. The company has a portfolio of over 900 national and international patents, including over 450 APIs and over 300 formulations across 35 therapeutic areas.
He said the company had invested about Rs 600 crore on R&D last year, which is around 7-8% of revenues
MSN Realty announces debut project
Hyderabad: MSN Group has diversified into the real estate sector with its realty arm MSN Realty investing Rs 2750 crore in setting up its debut project, `One by MSN', Neopolis. The 7.7-acre luxury project, which will house 655 apartments ranging from 5250 sq ft to 7460 sq ft in 55-storeyed towers, is part of the company's plan to develop over 20 million sq ft of real estate across Hyderabad over the next five years. MSN Realty, which has roped in Shapoorji & Pallonji as the EPC contractor for the project, also plans to roll out its second residential project at Neopolis over 7 acres next year.