Indian pharmaceutical company Aurobindo Pharma is negotiating the takeover of Czech drug manufacturer Zentiva. The transaction could be worth up to USD 5.5 billion (more than CZK 115 billion), which would make it the largest acquisition ever made by an Indian pharmaceutical company. The Economic Times reported this today, citing sources familiar with the situation.
Takeover talks
According to sources, Aurobindo is in talks with Zentiva’s current owner, US investment company Advent International. Advent bought Zentiva in 2018 from French pharmaceutical group Sanofi for €1.9 billion (approximately CZK 46.5 billion at the current exchange rate).
Aurobindo said in a statement to the stock exchange that management had not yet signed any binding agreements. Advent International and Zentiva declined to comment on the report, Reuters reported.
Zentiva’s results and operations
Drug manufacturer Zentiva k.s. saw its net profit fall by about a third to CZK 111.6 million in 2023. On the other hand, the company’s total revenue grew by almost a fifth year-on-year to nearly CZK 22 billion. Zentiva focuses on the development, manufacture, and distribution of generic drugs.
The group’s products are intended, for example, for the treatment of pain, cardiovascular diseases, diseases of the central nervous system, digestive, urinary and reproductive systems, and respiratory problems. According to its website, Zentiva operates in 35 countries and employs nearly 4,800 people.
In addition to its Prague headquarters and production plant, the company has other manufacturing and distribution facilities in Europe, from where it supplies key markets. The company has long emphasized the importance of making medicines available to the general public and is also investing in expanding its portfolio to meet growing demand for generic drugs throughout Europe and beyond.
Source: ÄŒTK
