Amid the continuous decline in the stock market, a pharma sector stock showed exceptional performance. Gujarat Themis Biosyn Limited's share price jumped in the down market. On Friday, this pharma company's shares rose by more than 15 percent.
The main reason for this surge is a major acquisition deal. This Indian company is set to buy multiple drug brands from French pharma giant Sanofi. The stock price jumped following this news.
What did the company announce?
According to information filed with the stock exchange, Gujarat Themis Biosyn will purchase 13 branded generic medicines from Sanofi. These medicines are primarily used for treating TB and infectious diseases. These brands have markets in more than 55 countries across Europe, West Asia and Africa.
Also Read | Sensex, Nifty slump for third day as global tensions rattle markets
The total value of this deal is 158 million euros, which is approximately 1740 crore rupees in Indian currency. The entire amount will be paid in cash once the deal is completed.
How significant is the deal?
The size of this deal is approximately 50 percent of the company's current market capitalization. Currently, Gujarat Themis Biosyn's market value is around 3520 crore rupees. According to the company, this acquisition will increase the company's revenue in the future. Profits may particularly increase due to branded generic sales, operational efficiency and vertical integration.
This acquisition will include brands, marketing approvals, regulatory files, stock and commercial rights. However, no factories or employees are included in this deal. As a result, the company will be able to expand business at lower costs.
Also Read | Infosys Q4 results: Profit jumps 21% to ₹8,501 crore, revenue hits ₹46,402 crore
Share price status
On Friday, this company's shares opened at 330.25 rupees on BSE. On this day, its highest price touched 373.20 rupees and lowest price touched 317 rupees.
According to market experts, the stock is showing a strong uptrend. There has been a breakout in both price and volume. Some experts are hopeful that the stock may move towards 420 to 430 rupees in the coming days. They also believe that 340 rupees can act as an important support level.
