InvestorQ : Why has the agreement between Aurobindo and Sandoz been terminated and what does mean for the future of the Aurobindo stock?
Chandralekha Desai made post

Why has the agreement between Aurobindo and Sandoz been terminated and what does mean for the future of the Aurobindo stock?

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Mitali Bhutta answered.
2 years ago
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Aurobindo has confirmed that it has mutually decided with Sandoz AG of Switzerland to terminate the deal to acquire the general oral solids and dermatology subsidiary of Novartis AG. The companies could not get the approval of the US Federal Trade Commission (FTC). The deal by Aurobindo to acquire Sandoz facilities in the US was worth $900 million and was subject to US FTC approval. The termination of the deal means that Aurobindo balance sheet will not come under pressure in the short to medium term when cash position of Indian companies is already tight. However, in the long run, it will keep Aurobindo out of the lucrative dermatology business.

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