Dabur Pharma up on possible sellout

MUMBAI: Shares of Dabur Pharma advanced Thursday on reports that the company is looking at options like inducting a private equity investor as well as a strategic alliance with a foreign company. It is understood that Dabur Pharma has held discussions with a German pharma company for a partnership, where the possibility of an outright sale has also figured, reports The Economic Times.

At 11:11am, the stock was at Rs 66.50, up 4.15 per cent or Rs 2.65 on the BSE. It touched a high of Rs 71.90 and low of Rs 65.65. Volumes in the counter soared to 1,41,008 shares as against two-week average of 31,453. On Wednesday, the share closed at Rs 63.85.

While Dabur Pharma chairman Mohit Burman was unavailable for comment, CEO Ajay Vij said, ���There is no move to induct any partner.��� Asked if the company was in touch with any German company for a strategic alliance, he said, ���We are in touch with many companies across the globe for hundreds of things, but this (induct a partner or selloff) is pure speculation,��� the paper reported.

However, a reliable industry source told ET that at present several options are being considered, though no final decision has been taken. A source close to the German company said discussions were at a somewhat advanced stage and the possibility of a total sellout was being actively considered.

Dabur Pharma is India���s only focused oncology (anti-cancer) company. With patent expiries worth $8-10 billion estimated in the next two years, the global oncology generics business is expected to grow significantly. Last year, the company sold its non-oncology formulations business to Alembic for Rs 159 crore.

Dabur Pharma has a market cap of around Rs 1,000 crore. The promoters of the company ��� the Burman family ��� hold a 65% stake in the company and at present their market capitalisation, the value of shares held by them, is estimated to be Rs 650 crore.