Aurobindo Pharma hits record high

Aurobindo Pharma jumped 5.11% to Rs 562 at 14:24 IST on BSE after the company said it has completed the previously announced acquisition of certain commercial operations in Western Europe from Actavis plc.

The announcement was made after market hours on Tuesday, 1 April 2014.

Meanwhile, the S&P BSE Sensex was up 91.51 points or 0.41% at 22,537.95.

On BSE, so far 9.97 lakh shares were traded in the counter as against average daily volume of 5.70 lakh shares in the past one quarter.

The stock hit a high of Rs 569.60 so far during the day, which is a record high for the counter. The stock hit a low of Rs 535.45 so far during the day. The stock had hit a 52-week low of Rs 138.45 on 6 August 2013.

The stock had underperformed the market over the past one month till 1 April 2014, advancing 2.03% compared with the Sensex's 6.28% rise. The scrip had, however, outperformed the market in past one quarter, jumping 36.54% as against Sensex's 6.18% rise.

The large-cap company has equity capital of Rs 29.13 crore. Face value per share is Re 1.

The agreement to acquire the Actavis operations was announced in January 2014. Aurobindo Pharma (Aurobindo) said it acquired personnel, commercial infrastructure, products, marketing authorisations and dossier licence rights in seven European countries. Actavis and Aurobindo have also entered into a long term commercial and supply arrangement.

Following receipt of clearances from competent authorities, Aurobindo now intends to combine the strength of both enterprises (including its vertically integrated platform and existing commercial infrastructure) in these markets and to identify and maximise all opportunities to improve performance, Aurobindo said in a statement.

The acquisition will make Aurobindo one of the leading Indian pharmaceutical companies in Europe, said Mr Muralidharan, SVP of European Operations for Aurobindo. The acquisition will enable Aurobindo to achieve critical mass in Western Europe with a top 10 position in several key markets. He further added "I am delighted to welcome relevant Actavis customers, suppliers, partners and employees to Aurobindo. We will continue to collaborate with Actavis to ensure business continuity and a smooth transition. In parallel, we will work closely with the acquired management teams to achieve a rapid and successful integration".

Mr Arvind Vasudeva, CEO of Aurobindo's Formulations Business further stated that, "We had carefully reviewed the Actavis European operations and concluded that with our cost competitiveness and group structure we could significantly capitalize Actavis' strong market position in these Western European countries and improve profitability, thereby accelerating our strategy of becoming a significant Gx player in Europe".

Actavis plc is a global integrated specialty pharmaceutical company focused on developing, manufacturing and distributing generic, brand and biosimilar products. Actavis has global headquarters in Dublin, Ireland and US administrative headquarters in Parsippany, New Jersey, USA.

Aurobindo Pharma's consolidated net profit jumped 354.7% to Rs 417.49 crore on 37.6% growth in net sales to Rs 2135.52 crore in Q3 December 2013 over Q3 December 2012.

Aurobindo Pharma, headquartered at Hyderabad, manufactures generic pharmaceuticals and active pharmaceutical ingredients (APIs). The company's manufacturing facilities are approved by several leading regulatory agencies like US FDA, UK MHRA, WHO, Health Canada, MCC South Africa, ANVISA Brazil. The company's robust product portfolio is spread over 6 major therapeutic/product areas encompassing Antibiotics, Anti-Retrovirals, CVS, CNS, Gastroenterologicals, and Anti-Allergics, supported by an outstanding R&D set-up. The company is marketing these products globally, in over 125 countries.

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