Final bids are expected to be in by the end of the week to buy German generic drugmaker Ratiopharm and reports are suggesting that cashwise, Actavis has made a higher offer than rivals Pfizer and Teva Pharmaceutical Industries.

Indeed unnamed sources cited by various news agencies claim that Pfizer and Actavis have already lodgd their bids and Teva is expected to follow suit by today at the latest. It is being claimed that the Icelandic company may be leading the pack.

Sources have said that Deutsche Bank, Actavis' main lender, is backing a 3 billion euro offer from the latter which is targeting 300 million euros in annual synergies at the combined company.
Teva’s bid is also expected to be substantial as the Israekli firm looks to grow its presence in Germany while Pfizer’s presentation over a week ago, led by chief executive Jeff Kindler, apparently impressed Ratiopharm’s management.

However another scenario has emerged whereby Pfizer could make a move for another German-based generics major, Stada, if it fails to acquire Ratiopharm. Peter Duellmann, head of healthcare equity research at Sal. Oppenheim told Reuters that it is “Pfizer's aim to broaden its Established Products unit, to add new products and regions. With its presence in eastern Europe, Stada seems to be the better of the two assets”.

However one flaw in this strategy is that Stada, which is battling for the number two spot in Germany's generics sector with Ratiopharm (and behind Novartis' Hexal unit) is that the management there has not shown any inclination to be acquired.