Aurobindo Pharma leads $5 billion race to acquire Prague-based Zentiva

Shortly after reports of the potential acquisition surfaced, Aurobindo clarified that no binding agreement or definitive decision has been made regarding the deal

Aurobindo Pharma has emerged as the leading contender to buy Prague-based drugmaker Zentiva from private equity (PE) firm Advent International in a deal estimated at $5-5.5 billion, The Economic Times reported on Wednesday, citing sources. If the deal goes through, it would mark the biggest acquisition by an Indian pharmaceutical company globally.

 

Another firm in the fray includes the United States (US)-based private equity firm GTCR, the report added.

 

A PE executive told the newspaper that binding offers were submitted a few weeks ago and discussions have reached an advanced stage. 

 

'No binding agreement' yet: Aurobindo

However, soon after the report surfaced, Aurobindo issued a clarification stating that "no binding agreement or definitive decision" has been made yet regarding the deal.

 

"The Company regularly explores various strategic opportunities in the ordinary course of its business, including potential acquisitions and partnerships, to enhance long-term shareholder value. However, at present, no binding agreement or definitive decision has been made by the board of directors of the company in relation to the transaction referred to in the said article(s). Accordingly, the said news item is premature and should not be relied upon," the company said in a BSE filing.

 

European push

The deal could further expand Aurobindo’s presence in the European market, where the firm is already performing well. In the first quarter of the financial year 2025-26 (Q1 FY26), it reported an 18 per cent year-on-year (Y-o-Y) revenue growth in European markets, which stood at ₹2,338 crore, driven by a strong performance across all key segments.

 

Similarly, revenue from growth markets formulations increased by 8.8 per cent Y-o-Y to ₹772 crore in the June quarter, compared to ₹709 crore in the same period last year.

 

Overall, Aurobindo Pharma reported a 10.2 per cent Y-o-Y drop in consolidated profit after tax (PAT) for Q1 FY26, which stood at ₹824 crore. The decline was attributed to a drop in sales in its active pharmaceutical ingredients business and the US market.

 

However, the drugmaker recorded a 4 per cent rise in revenue from operations, reaching ₹7,868 crore in the June quarter, up from ₹7,567 crore in Q1 FY25.

 

Shares of Aurobindo Pharma fell almost 4 per cent to ₹1,047 apiece on the BSE at 2:14 pm following the report.