Aurobindo Pharma gains 5% on acquisition of Sandoz's US business

Aurobindo Pharma
Shares of Aurobindo Pharma has rallied 5% to Rs 732 on Thursday, extending its Wednesday’s 2% gain on the BSE, after the company announced the acquisition of Sandoz's generic business in the US for $900 million.

“The company announces the signing of a definitive agreement to acquire certain assets from Sandoz Inc., USA ("Sandoz"), a Novartis Division, comprising a market leading dermatology business and a portfolio of oral solid products along with commercial and manufacturing infrastructure in the US,” Aurobindo Pharma said in a press release.

The acquisition is for 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. The acquisition will be on debt free and cash free basis and will be made through its wholly owned subsidiary, Aurobindo Pharma USA Inc, it added.

The acquisition enhances Aurobindo's market leading pipeline of Abbreviated New Drug Application (ANDA) filings with additional pipeline projects, including AND As that have already been filed, products under development, and first-to-file opportunities which have the potential to be exclusive, the company said.

At 10:33 am; Aurobindo Pharma was trading 4.8% higher at Rs 730 on the BSE, as compared to 0.33% rise in the S&P BSE Sensex. A combined around five million equity shares changed hands on the counter on the BSE and NSE so far.