Elder Pharma counter jumps 5.5% on report of takeover by Sanofi

Nov 19 2013, 05:03 IST
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SummaryMumbai-based Elder Pharmaceuticals shares jumped as much as 5.5% on Monday with reports surfacing during the weekend

Mumbai-based Elder Pharmaceuticals shares jumped as much as 5.5% on Monday with reports surfacing during the weekend that the company was close to being acquired by the French drug major Sanofi.

The company has a market capitalisation of R635.62 crore.

Elder Pharma’s total debt stands at R1,225.528 crore, according to Bloomberg data. It recently said that it defaulted in payment of interest on debentures to the tune of R10 crore. The drugmaker with a PE ratio of 7.85, has a forward PE ratio of 7.04 for FY14.

The company has also witnessed a steady fall in its revenue from September 2012, with a slight recovery in the second quarter of 2013 compared with the preceding quarter. It reported net sales of R271.68 crore for the quarter ended September 30, a fall of nearly 33% from a year ago.

The company’s strongest segment is women’s healthcare which contributed to 23% of total revenues in 2011-12.

France’s Sanofi beat the low-growth trend experienced by its European peers GSK and AstraZeneca by reporting a quarterly profit above the Street estimates, due to the 5.5% growth recorded in the emerging markets sector.

Sanofi’s CEO Chris Viehbacher had hinted at possible acquisitions in emerging markets, according to Reuters.

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