Aurobindo Pharma rose 3.88% to Rs 1,068 at 11:06 IST on BSE after the company said its unit has emerged as the highest bidder to acquire US-based Natrol Inc.
The announcement was made during trading hours today, 12 November 2014.
Meanwhile, the BSE Sensex was up 192.12 points, or 0.69%, to 28,102.18.
On BSE, so far 70,000 shares were traded in the counter, compared with an average volume of 1.65 lakh shares in the past one quarter.
The stock hit a high of Rs 1,069 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 1,028 so far during the day. The stock hit a 52-week low of Rs 265.15 on 12 November 2013.
The stock had outperformed the market over the past one month till 11 November 2014, rising 9.56% compared with 6.13% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 33.25% as against Sensex's 9.37% rise.
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The large-cap company has an equity capital of Rs 29.15 crore. Face value per share is Re 1.
On 10 November 2014, Aurobindo Pharma's 100% subsidiary, Aurobindo Pharma USA Inc. (Aurobindo USA) emerged as the highest bidder for acquisition of nutritional supplement maker, Natrol Inc. and other affiliate entities (Natrol), under a process to be finally approved by the United States Bankruptcy Court for the District of Delaware, Aurobindo Pharma said in a statement.
Under the auction process, Aurobindo USA emerged as the highest and best bidder with a bid of $132.5 million to acquire the assets of Natrol with an agreement to take on certain liabilities.
Aurobindo USA believes that Natrol is an excellent strategic fit and provides the right platform for creating a fully-integrated OTC platform in the USA and in other international markets. Natrol, which manufactures and sells nutritional supplements in USA and other international market, provides Aurobindo with strong brand reputation and presence in a variety of attractive supplement markets; proven performance in the mass market, health food and speciality channels; existing long term relationship with key distribution and retail partners addressing a broad range of consumers; and an effective growth strategy to expand market penetration, the company said.
This acquisition is subject to final approval by the US Court and other statutory approvals as may be required, including any termination of the waiting period or approval under the HSR Act, and closing conditions as per the Asset Purchase Agreement, the company added.
Natrol, Inc. manufactures and sells quality uncompromised nutritional supplements in the United States and select international markets. It offers branded products including vitamins, minerals, and supplements; diet and weight management products; sports nutrition products; products and formulas for hair, skin, and nails. The company was founded in 1980 and is headquartered in Chatsworth, California.
Meanwhile, stock exchanges sought clarification from Aurobindo Pharma with respect to news article appearing in the media on 11 November 2014 titled, "Aurobindo to replace half of Actavis portfolio"
Aurobindo Pharma clarified after market hours on Tuesday, 11 November 2014, that as a good corporate governance practice, it organizes analyst calls with management to discuss on the published quarterly results. The said news in the media has been captured from the call pertaining to Q2 September 2014 earnings, held on 7 November 2014.
The company said that it has consistently stated on turning around the loss making Seven Countries Western European Business of Actavis by optimizing costs, by integrating front ends of both the businesses, by supplying Aurobindo products in lieu of Actavis products wherever the cost is lower and bringing sizable Actavis product portfolio into Indian manufacturing sites of Aurobindo over a period of time to improve the costs.
It said that the news appearing in the media does not require disclosure under clause 36 of the listing agreement, as this is nothing different than what it has been sharing in the past on Actavis.
Aurobindo Pharma's net profit rose 58.41% to Rs 372.18 crore on 51.57% increase in total income to Rs 2908.51 crore in Q2 September 2014 over Q2 September 2013.
Aurobindo Pharma manufactures generic pharmaceuticals and active pharmaceutical ingredients. The company's manufacturing facilities are approved by several leading regulatory agencies like US FDA, UK MHRA, Japan PMDA, WHO, Health Canada, MCC South Africa, ANVISA Brazil. The company's robust product portfolio is spread over 6 major therapeutic/product areas encompassing antibiotics, anti-retrovirals, CVS, CNS, gastroenterologicals, and anti-allergics, supported by an outstanding R&D set-up. The company is marketing these products globally, in over 125 countries.
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