Aurobindo Pharma on Thursday (2 April) said that it terminated the agreement to buy the US generic oral solids and dermatology businesses from US-based Sandoz Inc.
"Aurobindo today announced the mutual agreement with Sandoz Inc to terminate the agreement to buy the Sandoz US generic oral solids and dermatology businesses from Sandoz Inc. This decision was taken as approval from the U.S. Federal Trade Commission for the transaction was not obtained within anticipated timelines," the company said in a stock exchange filing on Thursday (2 April 2020). BSE and NSE are shut today on account of Ram Navami.In September 2018, Aurobindo Pharma signed an agreement with Sandoz Inc to acquire certain assets comprising a market leading dermatology business and a portfolio of oral solid products along with commercial and manufacturing infrastructure in the US. The proposed acquisition was struck at an upfront purchase price of $0.9 billion in cash including potential upside in near term earn-out and additional potential earn-out on pipeline product in outer years.
Aurobindo Pharma is engaged in producing oral and injectable generic formulations and active pharmaceutical ingredients (APIs). Its product portfolio is spread over seven therapeutic/product areas, including antibiotics, anti-retrovirals, cardiovascular, central nervous system, gastroenterologicals, anti-allergies and anti-diabetics.
On a consolidated basis, the drug maker's net profit declined 1% to Rs 705.45 crore despite 12.1% rise in net sales to Rs 5799.44 crore in Q3 December 2019 over Q3 December 2018.
Shares of Aurobindo Pharma fell 5.03% at Rs 392.35 on Wednesday.
In the F&O market, Aurobindo Pharma's 30 April 2020 futures ended at 392.50, a premium of 0.15 points compared with the spot price.
On the options front, the Auro Pharma option chain for 30 April 2020 expiry showed maximum call open interest (OI) of 2.17 lakh contracts at the 500 strike price. Maximum put OI of 77 thousand contracts was seen at 300 strike price.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
