At least five Indian drug companies including Torrent Pharmaceuticals Ltd. (BSE:500420), Dr. Reddy's Laboratories Ltd. (BSE:500124), Aurobindo Pharma Limited (BSE:524804), Cipla Limited (NSEI:CIPLA) and Lupin Limited (BSE:500257), are reportedly in initial discussions to bid for Sagent Pharmaceuticals, sources familiar with the talks said. The discussions started about a month ago, sources told Economic Times. Sun Pharmaceutical Industries Limited (NSEI:SUNPHARMA) was also interested and had even initiated the due diligence process, but then backed out, mainly over valuation, the sources said.

Sagent has mandated Perella Weinberg Partners LP to scout for potential opportunities as part of its strategic alternatives. Valuation is expected to be upwards of $500 million, for which large generic drug makers and financial investors like global private equity funds may also be interested. Sagent didn't respond to an email Economic Times sent last week ending January, 22, 2016, seeking comment.

Cipla said it is constantly in discussions with multiple parties on potential collaboration opportunities in line with its aspiration to drive access and ensure availability of high quality, affordable medicines, but refused to comment on any specific talks. The other Indian firms that the sources said were in talks didn't respond to request for comment.