Aurobindo Pharma Clarifies Zentiva Buyout Reports, Says No Binding Agreement Yet

At this point in time, the Company has not entered into any binding agreement or definitive decision by the Board of Directors in relation to the said transaction.

Hyderabad-based Aurobindo Pharma has clarified market speculation linking it to a potential $5–5.5 billion acquisition of European generics company Zentiva, stating that no binding agreement has been signed and that the reports are premature.

The clarification came after media outlets reported that the drugmaker had emerged as the frontrunner to acquire Zentiva from private equity firm Advent International, triggering a 4 percent slide in Aurobindo Pharma’s stock.

In a filing with the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on August 20, Aurobindo Pharma said, “The company evaluates various strategic opportunities on an ongoing basis.

However, at this point in time, the Company has not entered into any binding agreement or definitive decision by the Board of Directors in relation to the said transaction.”

The company also stressed that the news circulating in the media was not based on any official disclosure. “The said news item is premature,” Aurobindo said in its statement to exchanges.

The announcement was made under the requirements of the Securities and Exchange Board of India (SEBI) Listing Regulations, which mandate prompt clarification of market-sensitive reports.

Aurobindo further assured investors that it would follow due process for any future developments. “As and when any such binding agreement is executed or Board decision is taken, the Company shall make appropriate disclosure in compliance with SEBI Listing Regulations,” the filing read.

Reports about the potential acquisition suggested that Aurobindo was considering one of its largest overseas buyouts, aimed at strengthening its footprint in Europe.

Zentiva, headquartered in Prague, is a major manufacturer of generic and over-the-counter medicines, with operations across more than 30 countries.

However, neither Advent International nor Zentiva has issued a public statement confirming any ongoing deal with Aurobindo.

This is not the first time Aurobindo has been linked to large-scale acquisitions in global generics. The company has pursued inorganic growth in the past, including deals in the United States and Europe.

But unlike previous acquisitions, this transaction, if it materializes, would represent one of its most ambitious plays in the European market.

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