UPDATE 2-India's Sun Pharma in talks to buy Sweden's Meda for $5-$6 bln-sources

Fri May 31, 2013 11:12am EDT
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* Deal would boost Sun generics business in developed world

* Meda's most promising asset Dymista allergy inhaler

* Olsson family controls more than fifth of Swedish firm

* Meda shares hit 5-1/2-year on news of talks (Adds detail on valuation, ownership, further analyst comment, context on recent deals)

By Sumeet Chatterjee and Kaustubh Kulkarni

MUMBAI, May 31 (Reuters) - India's Sun Pharmaceutical Industries Ltd is in talks to buy Sweden's Meda AB for between $5 billion and $6 billion to boost its generics business in developed markets, two sources with direct knowledge of the process said.

Meda makes speciality products, over-the-counter drugs and branded generics - the same areas of focus as Sun. The Swedish company had sales of about 13 billion crowns ($2 billion) in 2012 and has a stock market value of roughly $4 billion.

Mumbai-based Sun is India's most valuable drugmaker, with a market capitalisation of some $20 billion, and has made several acquisitions in recent years.

But a deal for Meda would be the largest yet for a company which had cash of 40.6 billion rupees ($722 million) at the end of March.   Continued...