Aurobindo Pharma Benefits On Buzz Of Big UK Acquisition
Aurobindo Pharma shares gained more than 1 per cent on Monday post the news which report ed that the Indian pharma company is a frontrunner to buy Teva Pharmaceutical’s UK business, which had earned revenue of around $300 million last financial. As per reports, Hyderabad-based Aurobindo Pharma and Intas are one of the final bidders about to buy the UK portfolio of the Israel-based generic drugmaker Teva, which has put up its UK and Irish portfolio for sale in order to comply with European anti-trust regulations.
Reports further say that Teva is selling the UK and Irish assets to comply with the anti-trust regulations as soon as the the Israeli pharma company disclosed $40.5 billion acquisition of Allergan Plc’s generics business. It further stated that both Aurobindo Pharma and Intas submitted binding offers of approximately $1 billion on Friday.Nonetheless, analysts suggest that investors should wait for more clarity before taking fresh bets on Aurobindo Pharma.
As per SV Prasad, chairman of Chime Consulting the company would wait in order to seek info on Aurobindo Pharma before getting into this stock. Technical analysts feel that Aurobindo Pharma is unlikely to move higher, until it breaks Rs 810 on the upside. The stock has been trading in a range for last seven months, he added.
As of 9.44 a.m., Aurobindo Pharma share price quoted flat at Rs 789.90, against 0.12 per cent fall in the broader Nifty. The stock opened at Rs. 795.95 and touched the day’s high and low at Rs. 798.10 and Rs. 784.10.
Aurobindo Pharma is recommended by Dynamic Levels as the top 500 shares for this quarter owing to its strong fundamentals. By strong fundamentals it is meant that Auronbindo Pharma has not incurred any losses in the last two quarters, debt equity is less than two and pledge is less tha 25 per cent. The closest support and resistance level of Aurobindo Pharma share price is seen at Rs. 750.10 and Rs. 822.35.