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Claris Lifesciences soars on the buzz of being in talks to sell its injectables business

21 May 2015 Evaluate

Claris Lifesciences is currently trading at Rs. 305.60, up by 24.60 points or 8.75% from its previous closing of Rs. 281.00 on the BSE.

The scrip opened at Rs. 323.00 and has touched a high and low of Rs. 331.00 and Rs. 300.00 respectively. So far 17,64,000 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 358.00 on 13-Apr-2015 and a 52 week low of Rs. 141.25 on 02-Jun-2014.

Last one week high and low of the scrip stood at Rs. 331.00 and Rs. 260.00 respectively. The current market cap of the company is Rs. 1,950.00 crore.

The promoters holding in the company stood at 60.99% while Institutions and Non-Institutions held 25.55% and 13.46% respectively.

Cadila Healthcare is reportedly in talks to acquire generic sterile injectables business of Claris Lifesciences (CLL).  Cadila is likely to pay a hefty premium, valuing the company at Rs 3,100-3,400 crore. Both sides are currently engaged in last-minute due diligence negotiations involving tax and other financial matters. 

For 12 months ended December 31, 2014, the injectables business posted revenues of Rs 405.6 crore and EBITDA of Rs 149.4 crore(37% EBITDA margin). Therefore, the business is being valued at over 22 times EV/EBITDA. To put it in perspective, the current market cap of parent CLL, including all the businesses, is Rs 1,793 crore.

Zydus Cadila is an innovative, global pharmaceutical company that discovers, develops, manufactures and markets a broad range of healthcare therapies. It is the only Indian pharma company to launch its own patented NCE - Lipaglyn, the world’s first drug to be approved for the treatment of diabetic dyslipidemia.


Peers
Company Name CMP
Redington 234.90
Adani Enterprises 2218.35
Amrapali Industries 17.53
Rashi Peripheral 455.25
PDS 301.45
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