Cipla is trading higher by 2% at Rs 669 on the National Stock Exchange (NSE) in early morning trade in otherwise weak market after the pharmaceutical company announced acquisition 100% of generic businesses in US for $550 million.
The stock opened at Rs 676 and touched a high of Rs 680 on the NSE. A combined 592,455 shares changed hands on the counter on the NSE and BSE till 09:18 AM. CNX Nifty was down 0.81% or 64 points at 7,759.
The company’s UK arm, Cipla EU has entered into definitive agreements to acquire two US-based companies, InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc, Cipla said in a press release.
The transaction being subject to certain closing conditions is valued at $550 million and will be an all cash transaction.
The above acquisitions will strengthen the overall presence of Cipla in the US in terms of scale, revenue, manufacturing opportunities and building a wide range of product portfolio, it added.
The transaction is expected to be completed by end of December 2015, subject to completion of certain conditions precedent and receipt of applicable regulatory approvals including the expiration or termination of the waiting period provided for by the Hart-Scott-Rodino Antitrust Improvements Act, the company said.