Aurobindo Pharma rose 3.58% to Rs 423.90 at 11:13 IST on BSE, extending Monday's 6.31% rise triggered by the company signing a binding offer to acquire commercial operations in seven Western European countries from Actavis plc.
The announcement was made on Saturday, 18 January 2014. Shares of Aurobindo Pharma rose 6.31% to Rs 409.25 on Monday, 20 January 2014. The stock has risen 10.12% in two trading sessions from Rs 384.95 on 17 January 2014.
Meanwhile, the BSE Sensex was up 68.38 points, or 0.32%, to 21,273.43.
On BSE, so far 4.85 lakh shares were traded in the counter, compared with an average volume of 5.31 lakh shares in the past one quarter.
The stock hit a high of Rs 426.25 and a low of Rs 412 so far during the day. The stock hit a record high of Rs 417.90 on 7 January 2014. The stock hit a 52-week low of Rs 127.15 on 28 March 2013.
The stock had outperformed the market over the past one month till 20 January 2014, rising 8.18% compared with the Sensex's 0.59% rise. The scrip had also outperformed the market in past one quarter, rising 96.90% as against Sensex's 1.54% rise.
The large-cap company has an equity capital of Rs 29.13 crore. Face value per share is Re 1.
Closing of the transaction is conditional on certain antitrust approvals and completion of employee consultation processes, Aurobindo Pharma said in a statement.
Aurobindo said it expects to acquire personnel, commercial infrastructure, products, marketing authorizations and dossier license rights in seven European countries. Actavis and Aurobindo will be entering into a long term commercial and supply arrangement in order to support the ongoing growth plans of these businesses. The acquisition expands Aurobindo's front-end operations into five segments (generics, prescription products, over-the-counter products, hospital products and generics tenders) with approximately 1,200 products and an additional pipeline of over 200 products, Aurobindo Pharma said in a statement.
Aurobindo Pharma said that the management estimates the net sales for the acquired businesses would be around euro 320 million in 2013 with a growth rate of over 10% year-on-year. Although these businesses are currently loss-making, Aurobindo said it expects them to return to profitability in combination with its vertically integrated platform and existing commercial infrastructure. The acquisition will make Aurobindo one of the leading Indian pharmaceutical companies in Europe, it added. Since 2006 Aurobindo has been steadily expanding its European footprint through an increasing presence in UK, Spain and Germany. The acquisition will enable Aurobindo to achieve critical mass in Western Europe with a top 10 position in several key markets, Aurobindo Pharma said in a statement.
Actavis plc is a global, integrated specialty pharmaceutical company focused on developing, manufacturing and distributing generic, brand and biosimilar products. Actavis has global headquarters in Dublin, Ireland and US administrative headquarters in Parsippany, New Jersey, USA.
Aurobindo Pharma's consolidated net profit rose 5.7% to Rs 234.95 crore on 28.1% growth in net sales to Rs 1897.48 crore in Q2 September 2013 over Q2 September 2012.
Aurobindo Pharma, headquartered at Hyderabad manufactures generic pharmaceuticals and active pharmaceutical ingredients. The company's manufacturing facilities are approved by several leading regulatory agencies like US FDA, UK MHRA, 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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