Aventis Pharma acquires Universal Healthcare. This will be a good stock for the portfolio

Posted By:

Aventis Pharma acquires Universal Healthcare
The pharmaceutical company, Aventis Pharma, received investors attention and its share price went up by 8% after the company announced its agreement to acquire Universal Medicare's business under which it markets and distributes branded nutraceutical formulations in India.

In a regulatory filing, Aventis Pharma said that with this acquisition, the company will advance its sustainable growth strategy in India. It will also facilitate the creation of a consumer healthcare and wellness platform.

The Universal Medicare's turnover of the business is approximately Rs 110 crore.

The transaction should close in the fourth quarter of 2011, subject to certain conditions being fulfilled said the announcement.

Under the proposed transaction, Universal Medicare will manufacture the products that Aventis Pharma will be acquiring on mutually agreed terms.

"This strategic acquisition will allow Aventis Phatma and Sanofi Group to reach out to large sections of India's population through a broad offering compromising of pharmaceuticals, vaccines and now nutraceiticals," said Dr. Shalesh Ayyangar, Managing Director, Aventis Pharma and Vice President, South Asia, Sanofi.

"India is one of our most important markets in the emerging world and this acquisition reinforces our commitment to invest and grow our presence in India through a diversified portfolio that is focused on patients' needs," said Antoine Ortoli, Senior Vice President, Intercontinental Region, Global Operations of Sanofi.

VIEW: A small position at 2% of your portfolio or even less. This stock should be followed in the coming quarters. Especially as the economic slowdown will hit the country and the stock market realizes it, the pharmaceutical and FMCG companies will help provide protect the portfolio.


Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Thousands of Goodreturn readers receive our evening newsletter.
Have you subscribed?