Albert David extends rally on sale of gastro drug 'Actibile' to Zydus

The stock rallied 9% to Rs 320, extending its previous day's 7% surge on the BSE.

Albert David has rallied 9% to Rs 320, extending its previous day’s 7% surge on the BSE, after the Ahmedabad-based pharma major Cadila Healthcare has acquired Actibile, a gastroenterology brand of the company.

Albert David (ADL) in a BSE filing said that it has entered into agreements dated March 28, 2016 with Zydus Healthcare (a wholly owned subsidiary of Cadila Healthcare) for the sale of ADL's brand 'Actibile' with a free and marketable title along with all business information, know-how and the trademarks associated with the brand for the following territories: (i) the Union of India; (ii) Nepal, (iii) South America (excluding Peru and Colombia), (iv) The United States of America; (v) Japan, (vi) South Africa; (vii) the European Union; and (viii) East Europe, for a lump sum consideration of Rs 55 crore.

The transaction was a part of strategic initiative by Albert David and the proceeds front the sale will be invested for growth and expansion of the branded formulation business of the company. The said asset purchase transaction with Zydus Healthcare is not a related party transaction, it added.

At 09:46 AM, the stock was up 8^% at Rs 318 as compared to 0.27% gain in the S&P BSE Sensex. Around 11,000 shares changed hands against an average 8,000 shares that were traded daily on the BSE in past two weeks.

Shares of Cadila Healthcare were trading flat at Rs 319 after hitting intra-day high of Rs 322 on the BSE.