Biocon Plan to Buy out Siro ???

[FAISAL ZAIDI]

Mumbai: Biocon will have much to gain from a possible alliance with clinical research organisation Siro Clinpharm. There is a buzz in the markets that the Bangalore-based firm is eagerly eyeing an alliance and/or even a stake in the Rs 200-crore Mumbai-based Siro.

Analysts say Biocon will not only get access to Siro’s huge client base, but the deal will also help its subsidiary Syngene get attractive valuations.

Siro offers services ranging from data management, pharmacovigilance, medical writing, bio-statistics, etc. which can bolster Biocon’s clinical trials expertise, says a research analyst from an equity firm. “Biocon will be able to use Siro’s client base to get more clinical trials work and thus get more projects.”
According to a Siro communications official, discussions are on with Biocon for a possible services alliance.

In January, Biocon’s CMD Kiran Mazumdar Shaw had said the company was looking at an alliance with Siro that could entail bundling of complementary services.

“Siro is a strategic fit for Biocon subsidiaries Clinigene and Syngene. Biocon is looking at listing Syngene and if Siro gets acquired and merged with Syngene, the valuations will be better,” says research analyst Sriram Rathi from Centrum Broking.

Syngene does contract research for pharmaceutical companies, while Clinigene manages clinical trials for drug companies.