Key Summary
- The Indian pharmaceutical firm is leading the race to buy Prague-based drugmaker Zentiva
- However, Aurobindo said in a stock exchange filing that no binding agreements have been signed by the company's board
- The only other serious bidder for Zentiva is US private equity firm GTCR
Indian drug maker Aurobindo Pharma is leading the race to buy Prague-based drugmaker Zentiva for up to $5.5 billion, the Economic Times reported on Wednesday.
Aurobindo is in talks with Zentiva's owner US-based private equity firm Advent International, the report said, citing people aware of the matter.
However, Aurobindo said in a stock exchange filing that no binding agreements have been signed by the company's board.
It said that in the event of a definitive development requiring disclosure, as per the listing regulations, it will make the necessary and timely announcements to the stock exchanges.
This potential acquisition could be the largest-ever by an Indian pharmaceutical firm.
It will surpass Biocon Biologics’ $3.3 billion Viatris biosimilars buyout and the $3.2 billion Ranbaxy stake purchase by Daiichi Sankyo in 2014.
The only other serious bidder for Zentiva is a US private equity firm GTCR.
Zentiva has a presence in 30 countries, and in India, it operates a manufacturing facility in Gujarat.
Advent acquired Zentiva in 2018, and since last year, it has been working with Goldman Sachs and PJT Partners to explore exit options.
Last month, Aurobindo announced the acquisition of US-based Lannett Company for $250 million, via its subsidiary Aurobindo Pharma USA.
