Abbott Laboratories India, the Indian arm of the US-based Abbott Labs, was up 8 per cent on both -- the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) -- today on information that its parent has decided to sell its 51 per cent stake in the company.
While information that Pharmacia & Upjohn is on the verge of signing a deal with the US company with regard to the sale, a number of Indian drug firms are also learnt to be in the fray.
However, pharma analysts held out a poor view of the company's prospects in the stake sale, arguing that the firm has been generally stagnating for a number of years now. "It figures nowhere in the list of the top 30 pharma companies in the country," an analyst said, pointing out that its brands per se would not get good valuation. Nicholas and Zydus Cadila could be among the few companies interested in picking up the company's stake, analysts said.
The Abbott India share price opened today at Rs 147 but zoomed up to a high of Rs 158.75, hitting the 8 per cent circuit filter. Last Friday, it closed at Rs 147. The scrip price has actually fallen by more than 8 per cent between the last week of November and the second week of December - from around Rs 160 levels to round about Rs 147 at the end of the last week. This was achieved over 12 trading sessions.
Abbott India is mainly into the production of bulk formulations such as erythromycin, thiopentone sodium, magaldrate and vitamins. It recently decided to focus on products outside the ambit of the Drug Price Control Order. The aim was to reduce its production costs.
The company exports thiopentone sodium bulk drugs, pentothal sodium vials and Selsun shampoo to Europe, Asia and Australia. Last fiscal, its sales from exports grew by more than 100 per cent.
