JB Chem tanks on J&J sales announcement

JB Chemicals & Pharmaceuticals plunged by over 18% in intra-day on the bourses today after the drug-maker entered into a deal to sell its over-the-counter (OTC) business in Russia and CIS countries to Johnson & Johnson subsidiary Cilag GmbH.

Following the move, shares of the company slumped by 18.29% to touch a one-month low of Rs 118.55 on the BSE during intra-day trade.

On the NSE, the stock nosedived by 17.76% to an intra-day low of Rs 119.

Investors became worried that the sale of the Russian business will impact future revenues of the firm and opted for heavy selling, an analyst said.

The Mumbai-based firm entered into an agreement with Cilag GmbH to sell its OTC business in Russia and CIS countries for a consideration of Rs 938.51 crore.

The Russia/CIS (Commonwealth of Independent States) OTC business is being sold as a going concern on a slump sale basis, including trademarks, brand, patents, registrations and domain names, the company said.

Meanwhile, the BSE Sensex was trading higher by 98.74 points at 18,092.07 at 1316 hours.