Aurobindo shares rise nearly 7pc on bourses

Written by PTI | Mumbai | Updated: Jan 21 2014, 01:01am hrs
AurobindoAt the NSE, the stock settled at Rs 410.90, up 6.76 per cent.
Shares of Aurobindo Pharma today climbed nearly 7 per cent after the company signed a binding offer agreement to acquire commercial operations of Dublin-based Actavis plc in seven Western European countries.

Aurobindo's stock ended at Rs 409.25, up 6.31 per cent from its previous close on the BSE. In intra-day, the generic drug maker's scrip surged 7.46 per cent to Rs 413.70.

At the NSE, the stock settled at Rs 410.90, up 6.76 per cent.

Closing of the transaction is conditional on certain anti-trust approvals and completion of employee consultation processes, Aurobindo said on Saturday, without disclosing the financial details of the deal.

"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 company had said.

"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," it said.

Management estimates the net sales for the acquired businesses would be around 320 million euros in 2013 with a growth rate of over 10 per cent year-on-year.