Aurobindo Pharma shares gained over 1 per cent on Monday after a news report said that the Indian pharma company is a frontrunner to buy Teva Pharmaceutical's UK business, which had revenue of around $300 million last fiscal.
The Economic Times, citing sources, in a report said that Hyderabad-based Aurobindo Pharma and Intas are among the final bidders to buy the UK portfolio of the Israel-based generic drugmaker Teva, which has put up its UK and Irish portfolio for sale to comply with European anti-trust regulations.
According to the report, Teva is selling the UK and Irish assets to comply with the anti-trust regulations after the Israeli pharma company announced $40.5 billion acquisition of Allergan Plc's generics business.
The report further said that both Aurobindo Pharma and Intas submitted binding offers of around $1 billion on Friday.
However, analysts suggest that investors should wait for more clarity before taking fresh bets on Aurobindo Pharma.
"I would wait for more info on Aurobindo Pharma before getting into this stock," SV Prasad, chairman of Chime Consulting, told NDTV Profit.
Technical analysts Ruchit Jain said Aurobindo Pharma is unlikely to move higher, unless it breaks Rs 810 on the upside. The stock has been trading in a range for last seven months, he added.
Aurobindo Pharma shares closed 0.42 per cent lower at Rs 786.65, compared to 0.41 per cent gain in the broader Nifty.
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