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Sun Pharma to acquire Canada's Aquinox Pharma for $8.2 mln

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The drug major on Wednesday said that a wholly-owned subsidiary of Taro Pharmaceutical Industries will acquire Aquinox Pharmaceuticals (Canada) Inc for $8.2 million.

Taro Pharmaceutical is a US-based arm of Sun Pharma. "one of the wholly owned subsidiaries of our subsidiary company, Taro Pharmaceutical Industries, has agreed to acquire by way of purchase of all outstanding shares of Aquinox Pharmaceuticals (Canada) Inc.," Sun Pharma said in a filing.

Aquinox Pharmaceuticals is a corporation organised and existing under the laws of the Province of British Columbia that carries on the business of research and development of pharmaceutical products for purposes of their commercialization, it said. The subsidiary of Taro Pharmaceutical will acquire 100% stake in Aquinox. The company said that no approvals are required for the acquisition and it is likely to be completed by 31 July. The announcement was made during market hours today, 29 July 2020.

On the technical front, the stock's RSI (relative strength index) stood at 55.228. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 50-day moving average (DMA) placed at 481.63 and its 200-day moving average (DMA) placed at 438.42.

Sun Pharmaceutical Industries reported 31.6% decline in consolidated net profit to Rs 494.35 crore on 14.7% spurt in net sales to Rs 8,078.03 crore in Q4 March 2020 over Q4 March 2019. The company will announce Q1 earnings on Friday, 31 July 2020.

Shares of the drug major advanced 2.18% to end at Rs 493. Sun Pharmaceutical Industries is the world's fourth largest specialty generic pharmaceutical company and India's top pharmaceutical company.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, July 29 2020. 16:46 IST