Biocon rallies over 1% on buying stake in Syngene International

NEW DELHI: Biocon Ltd rallied as much as 1.6 per cent in trade on Wednesday, after the drug maker acquired GE Capital's entire 7.69 per cent stake in its research services subsidiary Syngene International for Rs 215.38 crore.

At 09:30 a.m.; Biocon was trading 1.1 per cent higher at Rs 507.95. It hit a low of Rs 502.70 and a high of Rs 510.10 in trade today.

The company, which had sold the stake to GE on October 31, 2012 for Rs 125 crore, has paid almost double to buy back this stake.

"Biocon Research Ltd, a wholly owned subsidiary of Biocon, has entered into an agreement with GE Equity International Mauritius, a subsidiary of GE Capital Corporation to purchase the latter's investment in Biocon's research services subsidiary, Syngene International for an agreed consideration of Rs 215.38 crore," the company said in a BSE filing.

Syngene offers integrated drug discovery and development services with capabilities in medicinal chemistry, biology, in vivo pharmacology and toxicology.