The transaction is expected to close by August 2015.
India's largest pharma company by market capitilisation Sun Pharma is likely to buy GlaxoSmithKline (GSK) Pharma's opiates business in Australia. GSK's opiates business portfolio includes materials used in analgesics. Sun said GSK's opiates business and portfolio of products will get transferred to company's arm.
The transaction is expected to close by August 2015.
Reacting to the news, pharma analyst Surajit Pal of Prabhudas Lilladher said the move is a positive for Sun Pharma's opiates business though it does not generate significant revenue for the company.
Pal recommends accumulating the stock for now.
Below is verbatim transcript of Surajit Pal's interview with Latha Venkatesh, Ekta Batra and Sonia Shenoy on CNBC-TV18.
Sonia: Can you make sense of this information and how much of a positive or negative it would be for Sun Pharma?
A: I think this is positive for Sun Pharma's control substance business because it has become a non-starter despite the fact that they have acquired one company in Europe and have put up plants in US. They have also bought some of the licenses in the US to run this control substance business.
However, despite having spent so much of money for last six years this control substance business could not take much of significant revenue for the company. So, company might be looking to get a better volume expanding into other part of the world.
Latha: Is control substance a pain killer something like Morphine?
A: Anything which is related to opium kind of things.
Ekta: How big an acquisition would this be for Sun Pharma? How much cash do they have on books?
A: Control substance business is not a big business always for a company as far as companies like GSK. Generally, control substance business is utilised for pain killing as well as CNS products.
Ekta: This is for Australia in particular so this wouldn't be for the US?
A: The problem in control substance business is that export-import is absolutely known because it comes under huge observation of the state bodies. So, I believe it won't be that great, I think USD 200-250 million kind of revenue would be possible.
Ekta: Cash on books would be around USD 2 billion for Sun Pharma?
A: Yes USD 2 billion.
Latha: Would it be more likely an all-cash purchase?
A: Yes.
Ekta: How would you rate the acquisition for Sun Pharma from a strategic point of view?
A: Given the Sun Pharma focus is always on maintaining high margin, opium business is basically into that direction.
Sun Pharma stock price
On March 03, 2015, at 09:24 hrs Sun Pharmaceutical Industries was quoting at Rs 939.10, up Rs 15.25, or 1.65 percent. The 52-week high of the share was Rs 965.90 and the 52-week low was Rs 552.50.
The latest book value of the company is Rs 35.77 per share. At current value, the price-to-book value of the company was 26.25.
Anda sedang membaca artikel tentang
Sun Pharma to buy GSK's opiates business in Australia
Dengan url
http://sehatkafein.blogspot.com/2015/03/sun-pharma-to-buy-gsks-opiates-business.html?m=0
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Sun Pharma to buy GSK's opiates business in Australia
namun jangan lupa untuk meletakkan link
Sun Pharma to buy GSK's opiates business in Australia
sebagai sumbernya
0 komentar:
Posting Komentar