Business News›Prime›Pharma›A muddled deal has scarred Aurobindo Pharma. Regaining investor confidence won’t be easy.
Deals
A muddled deal has scarred Aurobindo Pharma. Regaining investor confidence won’t be easy.
![A muddled deal has scarred Aurobindo Pharma. Regaining investor confidence won’t be easy.](https://img.etimg.com/thumb/msid-85669953,width-1015,height-761,imgsize-16518,resizemode-8/prime/pharma-and-healthcare/a-muddled-deal-has-scarred-aurobindo-pharma-regaining-investor-confidence-wont-be-easy-.jpg)
![A muddled deal has scarred Aurobindo Pharma. Regaining investor confidence won’t be easy.](https://img.etimg.com/thumb/msid-85669953,width-1015,height-761,imgsize-16518,resizemode-8/prime/pharma-and-healthcare/a-muddled-deal-has-scarred-aurobindo-pharma-regaining-investor-confidence-wont-be-easy-.jpg)
Synopsis
Aurobindo Pharma has built a strong and diverse product pipeline to drive future growth. But corporate-governance issues and promoters’ history will be an overhang for the stock and are likely to have a bearing on investors’ perception of the second-largest pharma company in India in terms of revenue.
A deal done and undone in a jiffy has left Aurobindo Pharma in disarray. Not only has its stock been among the worst performers, the company’s reputation has also taken a beating. On August 12, Aurobindo Pharma announced its decision to acquire 51% stake in Cronus Pharma Specialities India Pvt Ltd, a company that makes veterinary pharma products, for a cash consideration of INR420 crore. On the same day, Aurobindo Pharma also reported
- FONT SIZEAbcSmallAbcMediumAbcLarge
ET
Uh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.