While the Unichem acquisition seems expensive at first glance, a closer look shows Ipca can benefit if it sweats the acquired assets
The utilisation of the idle assets of Unichem will be key to the success of the deal
Additionally, the Company's Board of Directors has also given the go-ahead to make an open offer to Unichem Laboratories' public shareholders in order to purchase from them up to 26% of the fully diluted outstanding equity share capital of the said company.
On Tuesday, the pharmaceutical company Unichem Laboratories said the US Food and Drug Administration (USFDA) has given the firm the go-ahead to market its medication with a 200 mg dosage.
The drug firm had reported a net loss of Rs 11 crore in the April-June period of last fiscal.
The deal marks the fifth acquisition for Torrent. In 2014, Torrent had acquired a set of Elder brands. In the past few years it has acquired manufacturing plants from ZygPharma and Glochem industries and few brands from Novartis.
In an interview to CNBC-TV18's Nisha Poddar and Ekta Batra, Prakash Modi, Chairman of Unichem Lab spoke about the Torrent-Unichem deal.
Geodesic | Unichem Labs | Dhanlaxmi Bank | DB Realty | Cairn India | Ruchi Soya | Suzlon Energy | Jet Airways | IOC | HPCL | BPCL and Kingfisher are stocks, which are in the news today.
UR Associates has come out with its report on pharma sector.
Ipca Labs and Lupin are top picks in pharma space, says Rajesh Agarwal, Head of Research, Eastern Financiers.