Ipca Labs - Reviving U.S. Hopes Through Unichem Acquisition: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Ipca Laboratories Ltd. is set to re-enter the U.S. generics market with the proposed acquisition of Unichem Laboratories. Unichek’s formulation capacity (~13.2 billion tablets per annum) supported by U.S. food and drug administration compliant facilities should help Ipca funnel its product pipeline as well.However, we believe the acquisition is expensive, given-increased competition in the U.S. generics oral solids space,rising regulatory risks,strong efforts needed to turnaround Unichem, andthe valuation of ~2.3 times enterprise value/sales on trailing 12 months basis. We await better clarity on various measures to be implemented by Ipca Labs to not only aid U.S. sales but also improve margins of Unichem business over the stipulated time..Unichem acquisition detailsIpca Labs has entered into a definitive share purchase agreement to acquire 23.5 million shares (a 33.3% stake) of Unichem from one of the promoters at Rs 440 per share, aggregating to Rs 10.3 billion. The transaction will be funded through Ipca Labs’ retained earnings.  Subsequently, Ipca Labs will also make an open offer to acquire up to 26% stake at Rs 440 per share, aggregating to Rs 8 billion. The transaction is subject to approval from the Competition Commission of India..Click on the attachment to read the full report:.IPCA Labs To Acquire 33.38% Stake In Unichem Laboratories For Rs 1,034 Crore.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Ipca Labs - Reviving U.S. Hopes Through Unichem Acquisition: Motilal Oswal

Ipca Labs has entered into a definitive share purchase agreement to acquire 23.5 million shares (a 33.3% stake) of Unichem.

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP