BackAurobindo Pharma to pursue ‘comprehensive evaluation’ on sale on injectables biz Eugia Pharma
The pharma major clarified a news report which said the promoters of the firm have started the process of selling a majority stake in its injectables business Eugia Pharma.
PremiumAurobindo Pharma said on Friday, August 25 that its Committee of Independent Directors will pursue a comprehensive evaluation of all options regarding the restructuring of its wholly-owned subsidiary Eugia Pharma Specialities Limited.
The pharma major clarified a news report which said the promoters of the firm have started the process of selling a majority stake in its injectables business Eugia Pharma.
“The company has already informed the stock exchanges on August 12, 2023, as part of the outcome of its board meeting that it is in the process of exploring all the possibilities of restructuring the business of Eugia Pharma Specialities Limited, a wholly owned subsidiary company focused on sterile/injectables, oncology and hormonal products," said Aurobindo Pharma in a regulatory filing to the stock exchanges.
“And as stated earlier, the Committee of Independent Directors will pursue a comprehensive evaluation of various alternatives or options and recommend to the Board for engendering the next horizon of growth as also enhancing value creation to the stakeholders," it added. Eugia Pharma is a speciality generic pharmaceuticals company with six manufacturing facilities located in India and US.
Earlier this month, Aurobindo Pharma released its April-June quarter results for fiscal 2023-24 (Q1FY24), reporting a decline of 22.5 per cent in net profit at ₹540 crore, compared to ₹697.6 crore in the corresponding period last year. The pharma major's revenue from operations during the first quarter of current fiscal stood at ₹6,850.5 crore, registering a rise of 9.9 per cent, compared to ₹6,236 crore in the year-ago period.
The growth in topline was supported by double-digit growth in across US and Europe formulations as well as Active Pharmaceutical Ingredients (APIs) segments. US formulations revenue increased by 11.2 per cent year-on-year (YoY) to ₹3,304 crore and accounted for 48.2 per cent of the consolidated revenues.
On August 25, shares of Aurobindo Pharma settled 0.58 per cent lower at ₹828.85 apiece on the BSE.
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