Sun Pharma gains after buying GSK's Opiates business in Australia

Sun Pharmaceutical Industries rose 1.42% to Rs 937 at 10:30 IST on BSE after the company announced that its subsidiary will buy GlaxoSmithKline's opiates business in Australia.

The announcement was made before market hours today, 3 March 2015.

Meanwhile, the BSE Sensex was up 60.77 points, or 0.21%, to 29,519.91.

On BSE, so far 43,595 shares were traded in the counter, compared with an average volume of 1.72 lakh shares in the past one quarter.

The stock hit a high of Rs 945.80 and a low of Rs 936 so far during the day. The stock hit a record high of Rs 965.90 on 5 February 2015. The stock hit a 52-week low of Rs 552.50 on 14 March 2014.

The stock had underperformed the market over the past one month till 2 March 2015, declining 0.53% compared with 1.16% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, gaining 9.86% as against Sensex's 3.57% rise.

The large-cap pharma company has an equity capital of Rs 207.12 crore. Face value per share is Re 1.

GlaxoSmithKline (GSK) and Sun Pharmaceutical Industries jointly announced that their respective wholly owned subsidiaries have reached an agreement related to GSK's Opiates business in Australia. The current GSK Opiates business including related manufacturing sites in Latrobe (Tasmania) and Port Fairy (Victoria) and its portfolio of opiates products along with inventory, will transfer to a subsidiary of Sun Pharma.

The product portfolio consists of poppy-derived opiate raw materials that are primarily used in the manufacture of analgesics for the treatment of moderate to severe pain. All employees from both sites will also be offered employment by Sun with the Opiates business. Both Sun Pharma and GSK believe that the future of the Opiates business will be secured as part of Sun Pharma, a company with a global footprint.

The transaction will allow GSK to simplify its operations in Australia and allow it to focus on delivering its innovative product portfolio that will be central to the company's growth strategy in that country.

The financial terms of the transaction are confidential. The transaction closure is subject to customary closing conditions and requisite regulatory and other approvals, and is expected to close by August 2015.

Sun Pharmaceutical Industries' consolidated net profit fell 6.9% to Rs 1425.07 crore on 1.9% decline in total income to Rs 4361.85 crore in Q3 December 2014 over Q3 December 2013.

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