Date: 07-Nov-2019

Aurobindo’s buyout of Sandoz assets delayed on FTC query

Aurobindo Pharma’s acquisition of the dermatology and generics business of Novartis’ Sandoz subsidiary is delayed further, as the US Federal Trade Commission (FTC) has asked for more information on a lawsuit the Indian company is facing, a person privy to the development said. Investors of Aurobindo Pharma have lost Rs 147 on each share since the Hyderabad-based pharma company announced the deal in September last year. With the FTC seeking more details, the closure of the acquisition is delayed to next year, said this person, who did not want to be named due to the sensitivity of the issue. “The $900 million acquisition by Aurobindo of Sandoz’s dermatology and formulation business will not happen in 2019; the earliest possible date for the divestment is set for February,” a company executive said