Sun Pharma acquires 60% stake in Vivaldis Health & Foods for ₹143 cr

Drug major Sun Pharmaceutical on Friday announced that it is set to acquire 60 per cent shareholding in Vivaldis Health & Foods for ₹143.30 crore from its existing shareholders, 

The remaining 40 per cent shareholding will be acquired in future as per certain terms and conditions, said Sun Pharmaceutical in its regulatory filing.

“Sun Pharmaceutical Industries Limited (which includes its subsidiaries and/or associate companies) (“Company”) has entered into an agreement to acquire 60% shareholding in Vivaldis Health And Foods Private Limited from its existing shareholders with remaining 40% shareholding to be acquired in future as per certain terms & conditions,” said the company.

It will be a cash transaction and is expected to be completed by May 2023.

“INR 143.30 crores subject to customary closing adjustments for 60% (sixty percent) shareholding,” the company said in its filing.

Vivaldis Health & Foods is engaged in the business of trading, distributing, manufacturing and marketing of drugs, food supplements and over the counter products in the companion animal segment of animal healthcare industry. The revenue for the financial year 2021-22 was ₹29.92 crores.

Recently, Sun Pharma's acquisition of Concert adds a complementary derma product to the existing specialty portfolio. The drug major has completed the acquisition of US-based Concert Pharmaceuticals. In January, the Mumbai-based company inked a pact to acquire Concert in a $ 576 million deal.

In a recent report, Jefferies has maintained BUY rating on Sun Pharma shares with a target price of ₹1,200 apiece and has recommended as top pick. Though, its sees ongoing litigation with Incyte on patents as a key hurdle.

“An unmet medical need, strong efficacy vs competing drugs and leveraging existing infrastructure should result in peak global sales of $850 m by 2031 translating into pre-tax NPV of INR64/share. Incremental R&D spend is unlikely to be a major drag on FY24-25 profitability," the note stated.

On Friday, the company's scrip ended 0.46 per cent down at ₹972.80 on BSE.

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