Piramal Health up 13% on Sanofi stake buy
The news of French drug major Sanofi-Aventis picking up stake in Piramal Healthcare at a premium has resulted in its stock price trading at Rs 202, about 13% higher from the previous close on BSE at 10:50 am.
By ET Bureau |
MUMBAI: The news of French drug major Sanofi-Aventis picking up stake in Piramal Healthcare at a premium has resulted in its stock price trading at Rs 202, about 13% higher from the previous close on BSE at 10:50 am.
According to reports, Sanofi-Aventis has completed due diligence and the deal could be closed soon. The company has called the acquisition news as mere speculation, denying any such possible stake sale.
Piramal Healthcare, which now earns a large part of its revenues from contract manufacturing of drugs, had sales of Rs 2,873 crore in 2007-08. It also conducts clinical trials and has a diagnostics arm. The pharma firm had hived off its new drug research unit into a separate subsidiary last year and the deal with Sanofi does not involve the research arm, said another person.
If the deal goes through, it would be Sanofi-Aventis��� second acquisition of a generic company in less than a year. In September last year, Sanofi outbid a rival suitor to buy Czech generic drugmaker Zentiva for $2.6 billion. The transaction was completed on Wednesday, making it the world���s 11th-largest generic drug company.
Last year, Japan���s Daiichi Sankyo acquired Ranbaxy for $4 billion to enter the generics space, earlier shunned by research-based global drugmakers. In India, Sanofi-Aventis operates through two entities, Aventis Pharma and Sanofi-Synthelabo (India).
According to reports, Sanofi-Aventis has completed due diligence and the deal could be closed soon. The company has called the acquisition news as mere speculation, denying any such possible stake sale.
Piramal Healthcare, which now earns a large part of its revenues from contract manufacturing of drugs, had sales of Rs 2,873 crore in 2007-08. It also conducts clinical trials and has a diagnostics arm. The pharma firm had hived off its new drug research unit into a separate subsidiary last year and the deal with Sanofi does not involve the research arm, said another person.
If the deal goes through, it would be Sanofi-Aventis��� second acquisition of a generic company in less than a year. In September last year, Sanofi outbid a rival suitor to buy Czech generic drugmaker Zentiva for $2.6 billion. The transaction was completed on Wednesday, making it the world���s 11th-largest generic drug company.
Last year, Japan���s Daiichi Sankyo acquired Ranbaxy for $4 billion to enter the generics space, earlier shunned by research-based global drugmakers. In India, Sanofi-Aventis operates through two entities, Aventis Pharma and Sanofi-Synthelabo (India).
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