Aurobindo's Veritaz acquisition unlikely to add much value: Analysts

Deal is nonetheless a stepping stone in the drug firm's strategic plan to focus on domestic formulations market, where it aims to have Rs 1,000-cr sales in three years

Hyderabad-based Aurobindo Pharma’s Rs 171 crore acquisition of Veritaz Healthcare is unlikely to add much value to its business. It is nonetheless a stepping stone in the drug firm’s strategic plan to focus on the domestic formulations market, where it aims to have Rs 1,000-crore sales in the next three years.

Aurbindo currently draws over 90 per cent revenues from international markets.

The company’s stock was down 2 per cent to Rs 692.25 apiece on the BSE on Tuesday.

Veritaz is controlled by the promoters of Aurobindo and the deal is a related-party transaction. “The acquisition is being done at arm’s-length price to