Aurobindo Pharma on Saturday said it will buy generic drug operations in seven western European companies from global pharmaceutical company Actavis Plc for about euro 30 million, or Rs 249.81 crore as per the current exchange rate.
The Hyderabad-based Aurobindo will buy personnel, commercial infrastructure, products, marketing authorisations and dossier licence rights related to Actavis’ operations in France, Italy, Spain, Portugal, Germany, The Netherlands and Belgium.
The deal will add about 1,200 finished products and an additional pipeline of over 200 products to Aurobindo’s portfolio.
Aurobindo said the acquired businesses are currently loss-making; however, it plans to return them to profitability. It estimated the net sales for the acquired businesses would be around euro 320 million in 2013 with a growth rate of over 10 per cent year-on-year.
The company’s sales from Europe constituted about 6 per cent of its total revenue in FY13. It recorded FY13 European sales of Rs 329.11 crore. Its total revenue for FY13 was Rs 5,451.61 crore.
The company posted a net profit of Rs 234.95 crore in the second quarter on sales of Rs 1,897.48 crore.
Aurobindo will also be entering into a long-term supply agreement with Actavis in order to support the ongoing growth plans of these businesses.
Aurobindo said it will fund the transaction through internal accruals. The company had cash and cash equivalents balance of Rs 306.01 crore as on September 30, 2013.
“We have carefully reviewed the Actavis European operations and concluded that with our cost competitiveness and group structure, we could significantly capitalise Actavis’ strong market position in these western European countries,” said Aurobindo’s CEO of formulations business, Arvind Vasudeva. FE
Nothing For Health Sector In Budget – Kk Agarwal
Budget Will Help Create Jobs, Should Have More For Taxpayer – Ficci
Did Not Expect Miracles In Budget – Ficci, Kolkata
Abolishing Wealth Tax Welcome – Grant Thornton
Vintage Design: The Montblanc Fountain Pen
The Holiday Professionals - A Chef In Portugal