Sun Pharma gains nearly 3% as company buys 14 brands from Novartis

Mumbai: Shares of Sun Pharma rose by nearly 3 percent on Wednesday as the drug major forayed into the Japanese prescription market by acquiring 14 brands from Swiss drug firm Novartis for USD 293 million (over Rs 1,940 crore).

The stock climbed 2.63 percent to Rs 815 on BSE.

On NSE, it went up by 2.43 percent to Rs 813.70.

According to the agreements signed by the parties, a wholly-owned subsidiary of Sun Pharma will acquire the portfolio consisting of 14 established prescription brands from Novartis for a cash consideration of USD 293 million, Sun Pharma has said in a statement.

"Japan is a market of strategic interest for us. This acquisition marks Sun Pharma's foray into the Japanese prescription market and provides us an opportunity to build a larger product portfolio in the future," Sun Pharma Managing Director Dilip Shanghvi said.

The 14 brands have combined annualised revenues of around USD 160 million and address medical conditions across several therapeutic areas.