Shares of Aurobindo Pharma will remain in focus as the company has decided acquire the commercial operations of Actavis Plc in seven western European countries for 30 million euros. The acquisition is expected to complement Aurobindo’s European operations, adding capabilities in France, Italy, Spain, Portugal, Germany, the Netherlands and Belgium, and brands such as ‘Arrow Generiques’. Although these businesses are currently loss-making, Aurobindo expects them to return to profitability with its own strengths and existing commercial infrastructure. Management estimates the net sales for the acquired businesses would be around 320 million euros in 2013 with a growth rate of over 10 per cent year-on-year. The key question, however, is the cost of acquisition.
Aurobindo pharma: Costly acquisition?
January 19, 2014: