Sun Pharmaceutical Industries declined 0.59% to Rs 899.80 at 10:15 IST on BSE after entering into a definitive agreement with Strides Arcolab to transfer erstwhile Ranbaxy Laboratories' central nervous system divisions to Strides.
Shares of Strides Arcolab rose 2.68% to Rs 1,176.30.
Sun Pharmaceutical Industries and Strides Arcolab made separate announcements on Saturday, 19 September 2015
Meanwhile, the BSE Sensex was down 177.20 points, or 0.68%, to 26,045.78.
On BSE, so far 36,742 shares were traded in the counter, compared with an average volume of 3.17 lakh shares in the past two weeks.
The stock of Sun Pharma was volatile. At the day's high of Rs 911.90, the stock rose 0.75%. At the day's low of Rs 899, the stock dropped 0.67%. The stock hit a record high of Rs 1,200.70 on 7 April 2015. The stock hit a 52-week low of Rs 748.15 on 26 September 2014.
The stock had outperformed the market over the past one month till 18 September 2015, gaining 1.83% compared with 5.79% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 5.92% as against Sensex's 3.31% decline.
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The large-cap company has an equity capital of Rs 240.65 crore. Face value per share is Re 1.
Sun Pharmaceutical Industries and Strides Arcolab announced on Saturday, 19 September 2015, that they have entered into a definitive agreement to transfer erstwhile Ranbaxy Laboratories' 'Solus' and 'Solus Care' marketing divisions operating in the central nervous system (CNS) segment in India along with their employees to Strides for a consideration of Rs 165 crore. As per IMS July 2015 MAT report, all the products of these two divisions together accounted for approximately Rs 92 crore in sales. During the divestment process, Sun Pharma was cognizant that the interests of its employees working in Solus and Solus Care divisions were not compromised. The transaction is subject to approval from the Competition Commission of India and other customary closing conditions. All other terms and conditions of the transaction are confidential.
Commenting on the transaction, Abhay Gandhi, CEO - India Business, Sun Pharma said that the agreement with Strides is part of its strategy to firmly consolidate its CNS business in India. Post successful completion of Ranbaxy's merger the company had an opportunity to assess the entire portfolio of its India Business. It had evaluated each and every therapy segment that it was present in and how these businesses can grow going forward. Based on this evaluation, it firmly believes that the potential of Solus and Solus Care divisions can be greatly enhanced with the focus that Strides will put in growing them. The divestment will help these divisions, its customers and the team, he added.
In April 2014, Sun Pharma had acquired Ranbaxy Laboratories in $4 billion landmark transaction.
Sun Pharmaceutical Industries' consolidated net profit dropped 60.2% to Rs 478.96 crore on 3.3% growth in net sales to Rs 6522.16 crore in Q1 June 2015 over Q1 June 2014.
Sun Pharmaceutical Industries manufactures specialty and generic medicines, targeting a wide spectrum of chronic and acute treatments. The therapeutic segments include psychiatry, anti-infectives, neurology, cardiology, orthopaedic, diabetology, gastroenterology, ophthalmology, nephrology, urology, dermatology, gynaecology, respiratory, oncology, dental and nutritionals.
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