Suven Life Sciences shares gained 2 percent in morning on Friday after the company and its US joint venture partner acquired bankrupt pharma company in the US.
The stock was quoting at Rs 267.90, up Rs 1.10, or 0.41 percent on the BSE, at 09:26 hours IST.
"It has entered into a 'stalking-horse' asset purchase agreement to buy the assets of Aceto Corporation’s Rising Pharmaceuticals and Rising subsidiaries through its joint venture partner Shore Suven Pharma, Inc," the pharma company said in its filing.
The acquisition is subject to court-approved bidding process under Section 363 of US Bankruptcy Code.
Shore Suven Pharma Inc. is a joint venture between Suven Life Sciences and Shore Pharma Investments, LLC of USA.
"This potential acquisition of Rising's assets would transform Shore Suven Pharma into a strong US generic pharmaceutical company," Venkat Jasti, CEO & Chairman of Suven Life Sciences said.
"Leveraging Rising's extensive product portfolio to become vertically integrated with our already world class API and finished dose manufacturing capabilities will enable us to better serve US customers," he added.
Vimal Kavuru, who will serve as CEO of Shore Suven Pharma, said, "The opportunity to work with Rising's suppliers and employees to ensure continuity of product supply to customers in connection with this proposed integration will be our top priority."
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