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Strides Arcolab rallies 13% on clarification of unit sale to Pfizer

The company clarified that the delayed or cancelled in injectables unit sale is purely speculative in nature.

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SI Reporter Mumbai
Last Updated : Feb 12 2013 | 4:06 PM IST
Strides Arcolab has soared almost 7% to Rs 1,032 in noon deals, extending its previous two day’s gain on NSE after the pharmaceutical company clarified the delayed or cancelled in the company's sterile injectables unit sale is purely speculative in nature.

“With reference to the news item that the company’s “Unit Sale to Pfizer Seen Hitting Valuation Hurdle", the company has clarified that the news report is not based on any information from the Company and is purely speculative in nature,” Strides Arcolab said in a regulatory filing.

Meanwhile, the Times of India report suggests that Pfizer's discussions with Strides Arcolab to acquire the latter's unit, Agila Specialties, is at a fairly advanced stage. 

“The deal under negotiations values Agila at nearly 8 times of its 2012 revenue, estimated at roughly Rs 1,330 crore,” added report.

The stock has outperformed the market by gaining 13% in past three trading sessions compared to around 1% fall in benchmark Nifty.

The stock opened at Rs 976 and has seen a combined 1.13 million shares changing hands on the counter so far on NSE and BSE.

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First Published: Feb 12 2013 | 12:13 PM IST

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