India Based Pharma Companies In Race To Buy Athenex, Shares Surge
Athenex Inc (NASDAQ: ATNX) shares climbed during the after-hours session as India's Intas Pharmaceuticals and Dr Reddy's Laboratories Ltd (NYSE: RDY) are reportedly in talks to acquire Athenex.
According to the Economic Times report, the deal could be valued at $200-250 million as the U.S.-based biotechnology firm looks to sell a controlling stake.
The two Indian pharma companies are competing with a handful of mid-market healthcare-focused private equity funds in the US, people with knowledge of the matter told ET.
Athenex had hired investment advisory firm Cowen Inc to run a formal process to find a buyer.
"A formal process has started, and the first round of offers have come in," said one of the people. "Intas and Dr Reddy's are the two Indian firms in the race. A transaction could be concluded during the current quarter."
During its recent earnings release, Athenex reported Q2 product sales of $25.8 million, +26% Y/Y.
It is said to have raised $85 million in total transaction value in Q2 for a total of $125 million in proceeds from sales of non-core assets in 1H 2022.
It maintains the FY22 product revenue guidance range of 20-25% growth Y/Y.
Price Action: ATNX shares closed 69.9% higher at $1.07 during after-hours trading on Thursday.
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