Merck KGaA sees strong interest in generics unit

Israel-based Teva Pharmaceuticals, Iceland’s Actavis, US-based Mylan Laboratories and Indian companies Cipla and Ranbaxy have all made bids, according to reports carried by the Reuters news agency.

However, a third Indian company, Dr Reddy’s Laboratories is thought to be out of the running for the unit. Analysts have observed that the high level of interest in the business may help Merck receive up to $6 billion.

Merck KGaA is looking to sell its generics business after the $13.3 billion acquisition of Serono, and its subsequent focus on biologics. The unit recorded sales of around $2.3 billion in 2006, and ranks fourth behind Teva, Novartis’ Sandoz unit and Barr Pharmaceuticals.