Sun Pharma at new high

The stock has rallied over 5% in past two trading sessions after the company has entered into a definitive agreement to acquire the generics business of URL Pharma.

Sun Pharmaceutical Industries is trading higher by 3% at Rs 759, also its record high on the Bombay Stock Exchange. The stock opened at Rs 741 and has registered a volume of 693,605 shares so far on both the exchanges.

The stock has rallied over 5% in past two trading sessions after the company said it has entered into a definitive agreement to acquire the generics business of URL Pharma, the US subsidiary of Japanbased Takeda Pharmaceuticals, for an undisclosed amount.

Upon completion of the purchase, the non-Colcrys (colchicine, USP) generic assets of URL Pharma will be owned and managed by Caraco Pharmaceutical Laboratories, a wholly-owned subsidiary of Sun Pharma.

Meanwhile, analyst at Nirmal Bang Institutional Equities in recent report said that, “Sun Pharma will continue to pursue acquisition opportunities in the near term, which may suppress margins and return ratios and consequently, drive valuation lower”.