Novartis India surges on heavy volumes

The stock has rallied 16% to Rs 541 on the Bombay Stock Exchange.

Novartis India has surged 16% to Rs 541 on back of heavy volumes media reports that Eli Lilly and Company proposed to acquire Novartis' animal health business.

Eli Lilly and Company announced an agreement to acquire Novartis Animal Health for approximately $5.4 billion in an all-cash transaction that will strengthen and diversify Lilly's own animal health business, Elanco, The Wall Street Journal report suggests.

Lilly will acquire Novartis Animal Health's nine manufacturing sites, six dedicated research and development facilities, a global commercial infrastructure with a portfolio of approximately 600 products, a robust pipeline with more than 40 projects in development, and an experienced team of more than 3,000 employees, added report.

The animal health segment accounts for nearly 11% of total Novartis India’s total revenues of Rs 903 crore as on March 31, 2013.

The stock opened at Rs 470 and touched a high of Rs 561 on the BSE.  Till 1110 hours, as many as 451,000 shares have already changed hands on the counter against an average 10,000 shares that were traded daily in the past two weeks on the BSE.