Ipca Labs firms up after acquisition

Ipca Laboratories rose 1.63% to Rs 582.85 at 9:48 IST on BSE after the company announced acquisition of US-based Pisgah Labs Inc.

The announcement was made during trading hours today, 17 January 2018.

Meanwhile, the S&P BSE Sensex was up 58.19 points, or 0.17% to 34,829.24.

On the BSE, 11,000 shares were traded in the counter so far, compared with average daily volumes of 29,000 shares in the past two weeks. The stock had hit a high of Rs 594.70 and a low of Rs 575 so far during the day. The stock hit a 52-week high of Rs 656 on 5 April 2017. The stock hit a 52-week low of Rs 400 on 11 August 2017.

Ipca Laboratories announced the acquisition of 100% share capital of Pisgah Labs Inc., a North Carolina Corporation, Old Hendersonville Highway, Pisgah Forest, North Carolina, USA (Pisgah) by Ipca Pharmaceutical Inc., USA (the company's wholly owned subsidiary) and Onyx Scientific, UK (Onyx) (the company's wholly owned step down subsidiary) for $9.65 millions free of debt.

Pisgah Labs Inc., North Carolina, USA was originally founded in the year 1981 as a contract manufacturer and developer of active pharmaceutical ingredients (APls) and intermediates.

Pisgah Labs Inc. has been a chemistry solutions provider for over three decades and will continue to operate out of its North Carolina manufacturing facility under the Pisgah trade name. Onyx and Pisgah's capabilities in chemistry services will dovetail effectively with the company's capabilities in supporting Phase II to commercial scale programmes and also enable the company to manufacture small volume APls for US market.

For the financial year ended 30 April 2017, Pisgah had a total income of $2.89 millions and EBIDTA of $1.14 million.

Ipca Laboratories is a vertically integrated pharmaceutical company with a strong thrust on exports, which now account for nearly 47% of the company's income.

Net profit of Ipca Laboratories rose 75.56% to Rs 96.47 crore on 2.3% decline in net sales to Rs 864.29 crore in Q2 September 2017 over Q2 September 2016.

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