Aurobindo Pharma shares soar over 9 pc on Sandoz deal

Shares of Aurobindo Pharma surged over 9 per cent Thursday after the company said it will acquire dermatology and oral solids businesses from Sandoz Inc, USA, for USD 900 million.

The scrip jumped 9.12 per cent to settle at Rs 759.55 on BSE. During the day, it soared 9.77 per cent to Rs 764.15.

On NSE, shares of the company zoomed 9.32 per cent to close at Rs 761.95.

The company's market valuation also moved up by Rs 3,717.61 crore to Rs 44,502.61 crore.

In terms of the equity volume, 9.25 lakh shares of the company were traded on BSE and over 1 crore shares changed hands on NSE, during the day.

Aurobindo Pharma Thursday announced signing of a definitive agreement to acquire certain assets from Sandoz Inc, USA, a Novartis division, comprising of a market leading dermatology business and a portfolio of oral solid products along with commercial and manufacturing infrastructure in the US.

The acquisition will be made through its wholly-owned subsidiary, Aurobindo Pharma USA Inc, the company said in a BSE filing.

"The acquisition announced today is in line with our strategy to grow and diversify our business in the US. Acquiring these businesses from Sandoz will allow us to further expand our product offering and to become a leading player in the generic dermatology market. Overall the transaction will position Aurobindo as the second largest dermatology player and the second largest generics company in the US by prescriptions," N Govindarajan, Managing Director at Aurobindo, said.