Orchid Chemicals up over 5%

MUMBAI: Orchid Chemicals & Pharmaceuticals scrip today surged over 5 per cent in early trades after the company said it will sell various assets including active pharmaceutical ingredients business and one R&D facility to the US-based Hospira Inc for $ 200 million (nearly Rs 1,112 crore).

Bucking a weak stock market, shares of the company started the trade on a strong note and further gained 5.41 per cent in early trade to Rs 117.80 on the BSE.

At 11:30 am, Orchid Chemicals was trading 1.7 per cent higher at Rs 113.65. The stock has hit a high of Rs 117.80 and a low of Rs 110.40 today.

The firm's business transfer agreement (BTA) with Hospira includes sale and transfer of Aurangabad API facility, an associated Chennai based-R&D facility and Penicillin and Penem API business.

"The proceeds from this business transfer will be utilised for de-leveraging Orchid's debt position and also pave the entry for the company's foray into newer product verticals," Orchid Chemicals had said in a statement yesterday.

The BSE benchmark Sensex was trading at 17,392.02, down 98.79 points at 1030 hrs.