Aurobindo Pharma share price fell 15% in early trade today after the firm said the $900 million deal to acquire Sandoz Inc's US-based generic oral solids and dermatology businesses, has been mutually called off.
Share price of Aurobindo Pharma fell 15% to Rs 333.35 compared to the previous close of Rs 392.15 on BSE. Aurobindo Pharma stock opened 10% lower at Rs 352.95 and hit an intra day high of 395 , signaling weak signs of recovery.
Total 3.33 lakh shares changed hands amounting to turnover of Rs 12.31 crore on BSE. The large cap stock has lost 49% during the last one year and fallen 14.26% since the beginning of this year.
Holzkirchen-based Sandoz is a leading player in generic pharmaceuticals and biosimilars and a division of Swiss drug major Novartis.
"This decision was taken as approval from the US Federal Trade Commission for the transaction was not obtained within anticipated timelines," said Aurobindo Pharma.
In September 2018, Aurobindo Pharma had said that its US subsidiary has entered into an agreement to acquire commercial operations and three manufacturing facilities in America from Sandoz Inc, USA, a Novartis Division, for $900 million.
The acquisition was to be made through its wholly owned subsidiary Aurobindo Pharma USA Inc. The deal was expected to close in 2019 following the completion of customary closing conditions, including US Federal Trade Commission clearances. Repeated delays, however, led to it being mutually terminated.
The transaction if completed would have positioned the Hyderabad- based firm as the second largest dermatology player and the second-largest generics company in the US by prescriptions.
By Aseem Thapliyal