Hyderabad-based Aurobindo Pharma Ltd is in talks with Dublin-headquartered generic drugmaker Actavis to acquire a few of its active pharmaceutical ingredients (API) units in Western Europe, as per a report in The Economic Times.
Actavis is reportedly keen on selling its loss making API units that generate revenues of $500 million in Italy, Spain, France, Germany and the Netherlands. As per the ET report, Aurobindo is in negotiations for buying a couple of units of Actavis.
Actavis markets more than 750 products globally through operations in over 60 countries. Its specialty pharmaceutical business focuses principally in the women's health, urology, gastroenterology and dermatology therapeutic categories. The firm has more than 30 manufacturing and distribution facilities globally.
Recently, Actavis sold its solid oral dosage facility in Tamil Nadu to Vivimed Labs.
Aurobindo has been increasing its API portfolio and has been active in acquiring firms in India. Recently it acquired Andhra Pradesh-based manufacturer of APIs—Hyacinths Pharma Pvt Ltd—for an undisclosed amount. In another transaction, it had also acquired the remaining 25 per cent stake in Silicon Life Sciences Pvt Ltd. It also struck a deal to acquire majority stake in an upcoming manufacturing unit of Celon Labs.
In the past it has also snapped firms like Hyderabad-based contract research firm Trident Life Sciences Ltd.
If its proposed deal with Actavis works out, it would the firm’s first overseas acquisition in more than six years.
Aurobindo Pharma clocked revenues of Rs 5,855.3 crore for the year ended March 31, 2013.
The company’s scrip was quoting at Rs 384.15 a share, up around 1 per cent in mid-day trades in a weak Mumbai market on Tuesday.
(Edited by Joby Puthuparampil Johnson)