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Bristol-Myers eyeing German Remedies pie

US drug giant Bristol-Myers Squibb Co is a likely contender for a stake in pharmaceuticals firm German Remedies, a source close to the stake sale said on Wednesday.

German Remedies is controlled by four German firms, two of which, Asta Medica and Heller AG, are each selling a 13.7 per cent stake. The other two, Schering AG and Boehringer Ingelheim own 4.6 per cent each.

A Bristol-Myers spokeswoman in the United States said she had no comment.

The source did not say if Bristol-Myers was on the shortlist prepared by the merchant bankers to the deal, Mehta Partners.

Two other firms -- Pharmacia & Upjohn India and Nicholas Piramal India Ltd are believed to be in the race to buy the 27.4 per cent stake in German Remedies.

Pharmacia & Upjohn India is fully owned by US major Pharmacia Corp.

Bristol-Myers is one of the few large multinational pharmaceutical companies not to have a presence in the Indian drugs market.

The source said the US firm had tried to set up a fully-owned subsidiary in India a few years ago but had not received the necessary government approvals.

Mehta Partners aim to complete the stake sale by early April, he said.

German Remedies is a strong player in asthma treatment and women's health. The company owns five manufacturing facilities in western India.

It had a net profit of Rs 65.86 million for the quarter to December on sales of 524.32 million.

German Remedies shares closed Wednesday up 2.7 per cent at Rs 509.45 while the benchmark Bombay index rose 3.23 per cent.

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