Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.38%, while the Shanghai Composite led the Hang Seng lower. They fell 2.52% and 1.23% respectively. European markets have opened on a mixed note. The rupee fell further by 35 paise to trade at 66.81 against the US currency in the afternoon session.
According to a leading financial daily, Cipla's UK subsidiary - Cipla EU has entered into definitive agreements to acquire two US-based companies, InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc. The transaction, being subject to certain closing conditions, is valued at US$ 550 m and will be an all cash transaction. The combined revenue from these entities is over US$ 200 m for the year ended Dec 2014 and over US$ 225 m in last twelve months ended June 2015. This acquisition, which is the second landmark acquisition in Cipla's 80 years of history, will give the company scale in the US generics market through a wide product portfolio in CNS, CVS, anti-infectives, diabetes as well as other value added generics. The acquisition of InvaGen Pharmaceuticals also provides Cipla with about 40 approved ANDAs, 32 marketed products, and 30 pipeline products which are expected to be approved over the next 4 years. The acquisition of Exelan Pharmaceuticals provides Cipla access to the government and institutional market in the US through Exelan's deep expertise, engagement and experienced management team in the business.
Engineering stocks languished in the red with Welspun Corp and Bharat Bijlee being the biggest losers. According to a leading financial daily, Crompton Greaves (CG) has bagged a 3-year contract from the French distribution network operator Electricite Reseau Distribution France (ERDF), which manages 95% of the electricity distribution network in France, to provide maintenance and repair services to 4,500 high power transformers. These transformers of ERDF, a subsidiary of EDF, are credited with supplying energy to 35 million households in France. As part of this contract, CG will provide preventive and corrective maintenance of the ERDF on- load tap changers (OLTC) through speedy turnaround services.