Intas Pharmaceuticals Limited and Dr. Reddy's Laboratories Limited (BSE:500124) are in talks to acquire Athenex, Inc. (NasdaqGS:ATNX) in a $200 million - $250 million deal, as the US-based biotechnology firm looks to sell a controlling stake. The two Indian pharma companies are competing with a handful of mid-market healthcare-focused private equity funds in the US, people with knowledge of the matter told ET. Athenex, which is into the development of cell therapies to treat cancers, had hired investment advisory firm Cowen Inc. to run a formal process to find a buyer.

"A formal process has started and the first round of offers have come in," said one of the people. "Intas and Dr Reddy's are the two Indian firms in the race at present. A transaction could be concluded during the current quarter." A mail sent to Athenex on Tuesday remained unanswered at the time of going to press Thursday.

Intas and Dr Reddy's also did not respond to emails seeking comment.