Laurus Labs to acquire Phekolong Pharmaceuticals

Laurus Labs Limited informed the exchanges on Wednesday that the company will acquire Phekolong Pharmaceuticals Pty Ltd, a wholly owned subsidiary company of Pharmacare Limited t/a Aspen Pharmacare, South Africa.

The company expects that this transaction will provide Laurus access to the South African public antiretroviral ("ARV") sector, which manages the world's largest public ARV programme. While Aspen will continue to manufacture the finished dose form ARV's for the South African public sector, the supply to this sector will be through Laurus' newly acquired South African subsidiary.

The company has agreed to acquire 100 per cent shares of Phekolong Pharmaceuticals Pty Ltd, subject to completion of conditions precedent, by way of cash consideration of ZAR 75,000 (Seventy-five thousand South African Rand).

In a filing to the exchanges, the company stated that at the conclusion of the transaction, all residual assets and liabilities that are within the target company immediately prior to completion will be for Pharmacare Limited's account and accordingly all such assets and liabilities will be transferred from the target company to Pharmacare Limited immediately prior to completion.

Despite this positive development, shares of Laurus Labs Ltd closed 1.12 per cent down in BSE at Rs.343.90 as compared to the previous close of Rs. 347.80. The stock hit an intraday high of Rs. 351.00 and intraday low of 340.95.