INSUBCONTINENT EXCLUSIVE:
Aurobindo Pharma shares traded with high volumes, surging 6.3 per cent to touch an intraday high of Rs 739.80 in the first half of the day
Aurobindo Pharma said it will acquire the dermatology and oral solids businesses from Sandoz Inc, USA, a unit of Swiss pharmaceutical
Aurobindo Pharma said the deal is worth $900 million on a "debt free and cash free" basis."The acquisition announced today is in line with
our strategy to grow and diversify our business in the US
Acquiring these businesses from Sandoz will allow us to further expand our product offering and to become a leading player in the generic
dermatology market," said N Govindarajan, managing director of Aurobindo Pharma.Aurobindo Pharma said the acquisition is expected to
The acquisition entails "potential upside in near term earn-out and additional potential earn-out on pipeline product in outer years", it
noted.The deal also includes dermatology and generic US oral solids portfolios of Sandoz US, three manufacturing facilities in Hicksville
and Melville in New York, and Wilson in North Carolina
Aurobindo Pharma will also get 100 per cent shareholding in Eon Labs Inc, a wholly-owned subsidiary of Sandoz.This is a carved out business
of Sandoz in the US, Aurobindo Pharma said
The net sales of the acquired business were around $1.2 billion for calendar year 2017.The deal also includes about 300 products and
additional development projects of Sandoz and an additional $100 million in performance-based payments, Novartis said
Novartis had earlier this year expressed its intention to sell the Sandoz unit after reporting disappointing sales form the unit.Aurobindo
Pharma shares traded with large volumes after the announcement
By noon, 4.4 lakh Aurobindo Pharma shares had changed hands on stock exchange BSE, as against a two-week average of 2.3 lakh.Aurobindo
Pharma led the pack of drug makers on the NSE, with the Nifty Pharma - a sectoral index comprising pharmaceutical counters - rising more
It has weakened more than 12 per cent against the greenback so far this year
Rupee depreciation boosts profitability of exporters such as pharma companies.At 12:02 pm, Aurobindo Pharma shares were trading 6.1 per cent
higher at Rs 738.50 apiece on the BSE, whose benchmark index Sensex was up 55 points at 38,073.(With agency inputs)
