In the first half of 2005, the Indian Pharma Industry has possibly seen the single largest number of global transactions in its 50-year history.

In July 2005, Nicholas Piramal acquired 17 per cent in Canadian biotech research company, Biosyntech; pharma packaging company Bilcare acquired US clinical and pharma research company, Proclinical Inc; in June 2005, Torrent acquired Heumann Pharma, a generic drug company with Pfizer.

Last month Matrix undertook one of the pharma industry's largest acquisition deals when it acquired Belgian firm, Docpharma, and late last year Hikal bought 50 per cent in Danish marketing company, Marsing.

The reasons behind the acquisitions are varied in an industry undergoing change both in India and abroad. From an Indian perspective, it has become important to reach critical mass if one is to remain competitive. Acquisitions overseas, especially in complementary therapeutic segments, provide faster access to key markets. Integration will not be a stumbling block as Indian companies have grown domestically through acquisitions.