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Aug 24, 2011, 04.54 PM IST | Source: Moneycontrol.com

Cipla, Lupin deny in stake sale talks with Takeda Pharma

Pharmaceutical companies Cipla and Lupin have both strongly denied that they are in talks with Takeda Pharmaceutical Co to sell stake or part of their business, and have said a newspaper report linking the two with the Japanese firm is "baseless."

Cipla, Lupin deny in stake sale talks with Takeda Pharma
Moneycontrol Bureau

Pharmaceutical companies Cipla and Lupin have both strongly denied that they are in talks with Takeda Pharmaceutical Co to sell stake or part of their business, and have said a newspaper report linking the two with the Japanese firm is "baseless."

A financial newspaper had Wednesday said that Takeda, Japan’s largest drug maker, wants to expand in India, and has held preliminary talks with Cipla and another generic drug maker Lupin about buying pharmaceutical business of one of the company.

The report further said that Takeda was interested in buying Lupin's domestic formulations business as well as its research facility, but the founders were not willing to sell the research unit.

"The company is not in discussions with Takeda for the purposes of selling its domestic formulations business...As such the news report is entirely baseless and speculative in nature," it said in a notice to stock exchanges.

Cipla too has clarified that there have been no such talks.

"The news item is baseless, untrue and is categorically denied," it said.

Cipla shares rose initially in morning trade following the newspaper report. However, the shares corrected and closed down near 0.5% at Rs 281. Lupin shares ended up 2.6% at Rs 449.50.
 
Japanese pharmaceuticals have been eyeing companies in emerging markets including India in recent years to strengthen their product portfolios. In 2009, Daiichi Sankyo, Japan's No.3 drugmaker, took majority control of  Ranbaxy Laboratories for USD 4.6 billion

Cipla stock price

On August 01, 2014, Cipla closed at Rs 442.50, down Rs 13.8, or 3.02 percent. The 52-week high of the share was Rs 462.65 and the 52-week low was Rs 366.70.


The company's trailing 12-month (TTM) EPS was at Rs 17.29 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 25.59. The latest book value of the company is Rs 127.76 per share. At current value, the price-to-book value of the company is 3.46.

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