Aurobindo Pharma touches all-time high, soars by 9% on Sandoz deal
With the blockbaster performance of today Aurobindo Pharma has now given a performance of 56.78% in a year.
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02:55 PM IST
The share price of Aurobindo Pharma in today's trading session, earmarked an all-time high of Rs 826.35 per piece on the benchmark Sensex index. In the beginning of the tradings, the company soared almost 9%. However, the current stock price of Aurobindo is Rs 806.70 above by Rs 47.15 or 6.21% at around 13:47 hours.
Reason why the share price of Aurobindo saw such heavy buying interest from investors is because on Thursday, the company announced that its wholly-owned subsidiary Aurobindo Pharma USA Inc, USA, has entered into an agreement to acquire commercial operations and three manufacturing facilities in USA from Sandoz Inc, USA, a Novartis Division, the entity being acquired belongs to Pharmaceuticals Industry.
Aurobindo will acquire 100% in Eon Labs Inc, a wholly owned subsidiary of Sandoz for a transaction value of $900 million
In the notification Aurobindo said, "Acquisition provides an unique opportunity to acquire a premier US generics business with a sizable and broad portfolio across key therapeutic areas. Acquisition will lead to strong synergies."
The company further explained that, this does not factor in potential divestment due to United States Federal Trade Commission (USFTC) requirement.
Aurobindo expects the transaction to be accusative to normalized EPS from first full year of ownership.
The net sales of the Sandoz were around $1.2 billion for the calendar year ended December 2017.
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With the blockbaster performance of today Aurobindo Pharma has now given a performance of 56.78% in a year.
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