Torrent Pharmaceuticals rallies on acquisition plans

NEW DELHI: Torrent Pharmaceuticals Ltd rose as much as 2.75 per cent in intraday trade on the BSE on Wednesday, following reports that the drug firm has inked an agreement to fully acquire Zyg Pharma for an undisclosed amount.

"The company has signed a share purchase agreement to acquire 100 per cent stake in Zyg Pharma Pvt Ltd, a company engaged in manufacturing various dermatological formulations like creams, ointments, gels, lotions and solutions," Torrent Pharmaceuticals said in a filing to the BSE.

Zyg Pharma, part of the Encore Group, is promoted by the Merchant family, PTI reported.

"Torrent will fund acquisition through internal accruals," the company said.

Torrent Pharmaceuticals said the acquisition will help it strengthen its position in niche dermatological segment, especially in developed markets like the US and Europe, added the report.

"The transaction has been approved by the Board of Directors of both the companies," it added.