Aurobindo Pharma shines on inorganic expansion

Aurobindo Pharma’s European subsidiary will be acquiring Portugal’s Generic Farmaceutica SA for Rs 969 crore. The company’s acquisition will be from Magnum Capital Partners for an all-cash deal. It will include a manufacturing facility in Amadora, Portugal, which has the capacity to produce 1.2 billion tablets annually.

Generis has a wide portfolio of products, with a major share in therapeutic areas such as cardiovascular, central nervous system, anti-infective, and the genitourinary system.

Post-acquisition, the Aurobindo group will be the largest in the generic pharmaceutical market in Portugal with a portfolio of 271 generic products. It also consolidates the company’s footprint in Portugal which now has Aurovitas, Unipessoal LDA and Aurobindo Pharma-Portugal. The combined entity will benefit from a robust pipeline covering all major molecules coming off-patent in the next five years.

On the financial front, Aurobindo Pharma estimates that the net sales for the acquired business will be approximately Rs 517 crore in 2017 with an increment of 11.11 per cent as compared to the previous year.

Aurobindo Pharma expects to complete the deal by February 2017, after the Portuguese Competition authorities clear the deal. The present deal of the company comes within months after its unsuccessful bid for Teva Pharmaceuticals’ assets in the UK and Ireland.

The share price of Aurobindo Pharma increased by 4.66 per cent on the bourses in early trades and is trading at Rs 709.5 on intraday basis