Torrent Pharma rallies 5%, hits 52-week high on acquisition plans

NEW DELHI: Torrent Pharmaceuticals Ltd rallied as much as 5 per cent intraday, after media reports suggested that the pharma major is close to sealing a deal to acquire the dermatology business of Mumbai-headquartered Encore group.

Market sources peg the deal size at upwards of Rs 350 crore.

The stock ended the day at at Rs 1304.95, up over 33 points.

Promoted by Merchant family, Encore Group is engaged into specialty pharmaceutical business for over 50 years. The group's derma division has combinations and formulations in categories as topical steroids, skin cleaning lotions, moisturising creams amongst others, TNN reported.

E-mailed queries sent to both Torrent Pharma and Encore group did not elicit any response.

Analysts say that the acquisition of derma business makes sense as Torrent has little presence in dermatology space. In fact, Torrent itself saw a huge growth in derma business among others, added the report.