Aurobindo Pharma has emerged as the leading contender to acquire Prague-based generic drugmaker Zentiva from Advent International in a deal valued at $5–5.5 billion (₹43,500–47,900 crore), according to people familiar with the matter. If finalized, this would mark the largest-ever acquisition by an Indian pharmaceutical company, surpassing Ranbaxy’s $3.2 billion sale to Daiichi Sankyo in 2014 and Biocon Biologics’ $3.3 billion takeover of Viatris’ biosimilars business.
The Hyderabad-based drugmaker is competing with US private equity firm GTCR, with both parties locked in final-stage negotiations. Sources indicate that binding offers have already been submitted, with a formal announcement expected within weeks.
Boost to European Presence
The acquisition would significantly strengthen Aurobindo’s footprint in Europe, especially in Eastern markets such as the Czech Republic, Romania, and Slovakia, where demand for biosimilars is on the rise. Unlike the US market, where price erosion remains a challenge, Eastern Europe offers steadier returns due to government-led bulk procurement of medicines.
Zentiva reported revenues of €1.7 billion ($1.98 billion) and EBITDA of €400 million ($467 million) in 2024. The company operates across 30 countries, with ambitions to reach one in five Europeans by 2028.
Financing the Deal
Aurobindo has reportedly secured a $4.75 billion credit line from MUFG as bridge financing, with the remaining $800 million expected from internal accruals.
Industry Impact
Analysts note that this bold move comes despite global geopolitical uncertainties. Aurobindo already leads its Indian peers in European revenues, which grew 16.6% year-on-year to ₹8,356 crore in FY25. The company is expanding its biosimilars pipeline and strengthening its oncology portfolio, with plans to capture margins of 40–60% in the EU biosimilar segment.
If completed, the deal would mark another major milestone in India’s growing presence in the global pharmaceutical sector.
