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Aurobindo Pharma stock rises over 2% after subsidiary buys assets of US-based Profectus BioSciences

Aurobindo Pharma share price gained 2.67% to Rs 462.2 compared to the previous close of Rs 450.20 on BSE

twitter-logo BusinessToday.In        Last Updated: November 29, 2019  | 10:53 IST
Aurobindo Pharma share price rises over 2% after subsidiary buys business assets of US-based Profectus BioSciences
On NSE, Aurobindo Pharma opened higher at Rs 454 compared to the previous close of 449.65

Aurobindo Pharma share price rose in early trade today after a subsidiary of the firm Auro Vaccines inked a pact to buy acquire certain business assets of US-based clinical-stage vaccine development company Profectus BioSciences. Aurobindo Pharma share price gained 2.67% to Rs 462.2 compared to the previous close of Rs 450.20 on BSE.

The large cap stock opened higher at Rs 455.05 on BSE.  It gained up to 2.71% to Rs 461.85 on BSE. On NSE, the stock opened higher at Rs 454 compared to the previous close of 449.65.

"Auro Vaccines, 100% subsidiary of Aurobindo Pharma USA Inc., USA, which in turn is 100% subsidiary of the company, has entered into a definitive agreement to acquire certain business assets from Profectus BioSciences Inc, USA, a clinical-stage vaccine development company," Aurobindo Pharma said.

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The acquisition provides Auro Vaccines access to - proprietary and innovative technology platforms for prophylactic use and therapeutic use along with global Research and development centre. The acquisition is likely to be completed in the first half of 2020. The stock has lost 42.37% during the last one year and fallen 37.6% since the beginning of this year.

Earlier this month, Aurobindo Pharma share price fell to more than 5-year low intraday after company received 14 observations from the US health regulator for its Pashamylaram unit. The stock fell over 10 percent to Rs 389.70 on the BSE, the lowest level since August 2014.

The drugmaker said the United States Food and Drug Administration (US FDA) inspected its Unit IV, a general injectable formulation manufacturing facility situated at Pashamylaram, Hyderabad, during November 4-13, 2019. "At the end of the inspection, we have been issued a 'Form 483' with 14 observations," said Aurobindo Pharma.

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