Baxter Healthcare’s proposal to acquire India-based Claris Injectibles got approval from the Foreign Investment Promotion Board (FIPB) on Monday. Four foreign direct investment (FDI) proposals, including Baxter Healthcare’s deal worth `4,020 crore, were cleared by the FIPB, a senior government official said after the meeting. Baxter had earlier said that Claris injectables could deliver annual global revenues in excess of $100 million and Baxter would expand its portfolio of essential generic injectable medicines with the acquisition of Claris.
The FIPB also approved on Monday applications from Panacea Publishing and Vodafone Mobile Services, he said. There will be no fresh inflows of FDI in these cases, as these proposals were about restructuring, he added.
The Baxter deal was the second most important deal in the pharmaceutical sector to have got the FIPB approval in the past one month. Late last month, the FIPB had approved Shanghai Fosun Pharmaceutical (Group) Co Ltd’s $1.3 billion acquisition of Hyderabad-based Gland Pharma. The Hong Kong-listed Chinese company had agreed in July last year to pick up about 86% in the injectable drugmaker, including 36% held by KKR & Co.
FIPB phase-out by next month The Cabinet is expected to decide by May-end a proposal to phase out the FIPB, currently responsible for clearing FDI proposals, said the official.
Finance minister Arun Jaitley, in the Budget 2017-18, had announced the government’s intention to scrap the FIPB and replace it with a new system. The move was aimed at removing procedural bottlenecks and making it even easier for foreign investors to invest in India.