Crawford Bayley, Mumbai, represented Orchid Chemicals in the sale of its generic injectable pharmaceuticals business to US-based Hospira Inc., the world leader in the specialty generic injectable pharma sector. Hospira acquired Orchid Chemical's business for approximately $400 million (Rs. 1,866 crores). The companies have also signed a long-term exclusive agreement for Orchid to supply active pharmaceutical ingredients to Hospira's newly-acquired generic injectable pharmaceuticals business. This agreement builds on the existing product development and commercialization relationship between Hospira and Orchid.

Hospira's domestic legal counsels were Khaitan & Co, led by Partner Haigreve Khaitan. Khaitan had previously acted for Mayne Pharmaceuticals, which was acquired by Hospira in 2007 for $2.6 billion (Rs. 12,135 crores). Haigreve Khaitan said, "We are delighted to have assisted Hospira Inc. in this important and complex transaction which marks their arrival to the Indian injectables pharmaceutical sector. We were advising Mayne Pharma, Australia which became part of Hospira, and [this acquisition] would give tremendous growth opportunities to both Hospira and Orchid."

Baker & McKenzie advised Hospira on international legal issues. Orchid retained its Global Counsels, Latham & Watkins on this deal. Latham are also the lead counsel for Orchid in several patent infringement litigations in the United States.  

This acquisition is the latest in a series of pharmaceutical M&As intended to give foreign pharma giants entry into the fast-growing Indian pharma market. Several top law firms have set up specialized Pharma practices, including Luthra, who lured away practice head Ashwin Sapra from Ascend Therapeutics in August this year.

Pharmaceutical M&As have proved lucrative for firms such as Vaish Associates, Amarchand Mangaldas, Desai & Diwanji, P&A Law Offices and Wakhariya. Vaish advised Ranbaxy in its takeover by Japanese pharma giant, Daiichi, who were advised by P&A Law Offices. Vaish received another lucrative pharma brief from Fortis, who acquired 10 hospitals earlier this year from the debt-ridden Wockhardt Hospitals, Amarchand's client. Wockhardt also sold its animal health division to France-based Vetoquinol, who were advised by Kelly Drye's India affiliate, Wakhariya & Wakhariya. Desai & Diwanji also benefitted from the active pharma segment when they advised French pharma major Sanofi Pasteur in their acquisition of Hyderabad-based Shanta Biotechnics.