Reliance Life Sciences looks for acquisition

Reliance Life Sciences has said it is looking for acquisitions in the clinical research space, but high-valuations are hindering its plans.

"We are looking to acquire clinical research companies," Reliance Life Sciences Chief Executive Officer K V Subramaniam told PTI.

"We are looking at acquisition up to $ 50 million. But companies that are prepared to sell ask for 10 to 15 times more of EBITDA," he said.

The company had identified at least three clinical research companies in Europe, but had to back down because of high-valuations.

"Valuation is a big factor while making an acquisition. Most of them did not make sense," Subramaniam said.

The six-year-old organisation acquired UK-based Genemedix in 2007 for GBP 14.6 million - the Indian company's first acquisition.

The Mukesh Ambani-owned firm is also taking its own sweet time in acquiring because it does not have the "management bandwidth" to support new acquisition. The company is not looking for acquisitions at home.

"We are better off to build our business organically in India," he said.

Though, Reliance Life Sciences would like to grow both organically and inorganically, high valuations of target companies has forced it to grow organically, he said.