Aurobindo Pharma Share Price Drops Nearly 5% Amid Zentiva Acquisition Reports

Market Performance

Aurobindo Pharma share price fell sharply on Wednesday, August 20, 2025, slipping almost 5% to ₹1,039 per share. The decline came after reports suggested that the company had emerged as a frontrunner to acquire Prague-based generic drugmaker Zentiva.

• Intraday Low: ₹1,039.30
• One-Day Fall: 4.7%
• 12-Month Performance: Down 28%
• Year-to-Date Decline: 22%

Main News

According to reports, the proposed deal for Zentiva is valued at $5–5.5 billion (₹43,500–47,900 crore). If completed, it would mark the largest-ever acquisition by an Indian pharmaceutical company—both in domestic and overseas markets.

The transaction would surpass previous big-ticket pharma acquisitions such as:

• Daiichi Sankyo’s $3.2 billion Ranbaxy deal (2014)
• Biocon Biologics’ $3.3 billion purchase of Viatris’ biosimilars unit

The potential buyout could significantly expand Aurobindo’s presence in Europe, particularly in Eastern European markets like Czech Republic, Romania, and Slovakia. These regions are considered promising growth areas for biosimilars, especially with patent expiries of several major drugs on the horizon.

Company Clarification

Following the market buzz, Aurobindo Pharma issued an official clarification under SEBI’s disclosure regulations.

Key points from the statement:

• The company regularly explores strategic opportunities, including acquisitions and partnerships.
• No binding agreement or board approval has been finalized regarding the Zentiva acquisition.
• The news reports were termed premature and not to be relied upon.
• Any material developments will be disclosed to stock exchanges as per regulatory norms.

Company Financials – Q1 FY26 Performance

Aurobindo Pharma recently reported its Q1 FY26 earnings for the quarter ending June 2025.

• Net Profit: ₹824 crore (-10.2% YoY from ₹918 crore)
• Revenue from Operations: ₹7,868 crore (+4% YoY from ₹7,567 crore)
• EBITDA: ₹1,603 crore (- marginally from ₹1,619.6 crore YoY)
• EBITDA Margin: 20.4% (vs. 21.4% last year)

Regional Revenue Breakdown

• US Formulations: ₹3,488 crore (- 1.9% YoY)
• European Formulations: ₹2,338 crore (+18% YoY)

Summary

The sharp decline in Aurobindo Pharma share price was triggered by reports of a potential multi-billion-dollar Zentiva acquisition, which the company has clarified as premature. While the deal, if finalized, could mark a landmark moment in Indian pharma history, investors remain cautious. On the financial side, Q1 FY26 results showed steady revenue growth but pressure on profitability and margins.