Aurobindo Pharma shares decline 4.6% after firm denies Zentiva buyout report; check details

The report also stated that Aurobindo is competing with US private equity firm GTCR. Both sides are engaged in intense negotiations to finalise the various commercial and operational aspects of the transaction.

However, Aurobindo Pharma had denied the report. “…at present, no binding agreement or definitive decision has been made by the Board of Directors of the Company in relation to the transaction referred to in the said article(s). Accordingly, the said news item is premature and should not be relied upon,” the drugmaker said in a regulatory statement on Wednesday.

“In the event of any definitive development requiring disclosure under the SEBI Listing Regulations, the Company will promptly make the necessary and timely announcements to the stock exchanges in accordance with applicable regulatory requirements,” it further said.

Following this, shares of Aurobindo Pharma tumbled on the National Stock Exchange. Last seen, the stock was trading at ₹1,052.40 per share, declining 3.42%.

Meanwhile, in an analyst call last week, CFO Santhanam Subramanian had said that the company expects its China facility to break even in the third quarter of the current financial year.

The Hyderabad-based drug maker commenced operations at the facility in the last week of November 2024 and is now ramping up production.

“This facility with an initial capacity of 2 billion units plus is ramping up as expected and will begin contributing to revenue in the coming quarters and is expected to break even at the EBITDA (earnings before interest, taxes, depreciation, and amortisation) level by Q3 FY26,” Subramanian said in an analyst call.

He noted that around $145 million has been invested in the facility, which commenced production and invoicing in Q4 FY25 and Q1 FY26, respectively.

Elaborating on other investments, Subramanian said the company has invested about $70 million in two US facilities, with production expected to start in the current fiscal year.

Aurobindo Pharma reported a 10% year-on-year dip in its consolidated net profit to ₹824 crore for the June quarter, due to a fall in sales in the US and API business vertical.

Its revenue from operations increased to ₹7,868 crore for the June quarter against ₹7,567 crore in the year-ago period.