M&A

M&A

Aurobindo Pharma calls of $4-B Eugia sale on valuation mismatch

Economic Times  

Publicly listed Aurobindo Pharma has abandoned the proposed sale of Eugia Pharma Specialities – which could have been the largest deal for an injectables business in India at USD 3-4 Billion – due to valuation differences with potential buyers. Eugia consists of general injectable, oncology injectable, oncology oral solids, and hormonals. The Hyderabad-based promoter family of V Ramprasad Reddy and K Nityanand Reddy currently own 51.8% of Aurobindo, a vertically integrated pharmaceutical formulations manufacturer set up in 1986. Its current market capitalisation is INR 32,036 crore. PE firms Blackstone and Baring PE Asia were in the fray for the acquisition. The plan submitted by the funds involved splitting the Aurobindo Pharma business and spinning out Eugia into a separate listed company.