beyondbrics

The Indian advance into the global pharmaceutical and medical equipment market goes on. Following some big deals, here is a modest $54.6m transaction which brings together Opto Circuits, a Bangalore-based pharmaceutical technology company, and Cardiac Science, a Washington state cardiac devices maker.

Opto announced on Tuesday that it’s buying Cardiac Sciences to boost its presence in US markets. and Cardiac says it wants access to Opto’s financial resources, operational capabilities and global reach.

“This transaction … will greatly enhance Opto Circuits’ product offering and presence in the US,” said Vinod Ramnani, Opto’s chairman and managing director. David Marver, president and chief executive of Cardiac, chimed in: “Our business will benefit greatly from Opto Circuits’ financial resources, operational capabilities, and global scale.”

All good, and their products look compatible. Cardiac Science makes cardiology devices and systems while Opto designs and builds healthcare equipment. Soon the combined market reach will be much enlarged.

Opto is buying up all Cardiac’s outstanding stock for $2.10 per share, a 9.5 per cent premium to Cardiac’s Monday closing price on Nasdaq. But the stock has fallen 46 per cent in the past year, with the majority of the losses coming in late 2009, so, if the recent record is any guide, it doesn’t look at expensive.

Meanwhile, just to confirm there is still a healthy two-way flow in global pharma deals between developed and emerging markets, US-based Pfizer announced on Wednesday it would acquire for $240m a 40 per cent stake in Laboratório Teuto Brasileir, a leading Brazilian generics manufacturer, with an option to buy the remaining 60 per cent in 2014.

“The partnership will enhance Pfizer’s position in Brazil, a key emerging market, by providing access to Teuto’s broad portfolio of approximately 250 products in more than 400 presentations,” said Pfizer.