Bafna Pharmaceuticals looking to raise capital; Mylan said to be among suitors

Chennai-based small size drugmaker Bafna Pharmaceuticals Ltd is looking at various options to raise capital, as per a stock market disclosure on Tuesday.

It was responding to a story in The Economic Times, which said that US-based Mylan and two other Indian companies are looking to acquire Bafna.

Bafna said the media reports are speculative but said it is in negotiations for a deal which is at a primitive stage right now.

Bafna’s net sales rose to Rs 175 crore last year compared with Rs 128 crore in FY12. Its net profit increased from Rs 1.8 crore to Rs 3.96 crore in the same period.

Earlier, Bafna, which manufactures drugs for iron deficiency under the Raricap brand, announced that it will diversify into pain killer and anti-infective segment by launching new products.

Sales of Raricap, which is the flagship product of the company, doubled in FY13 to Rs 16.5 crore from Rs 7.7 crore in the previous year. The company, which was founded in 1981 and went public in 1995, also produces oral antibiotics and has two facilities near Chennai.

Bafna scrip rocketed 19 per cent in intra-day trades but ended the day at Rs 30.20 almost unchanged from the previous day’s close on BSE in a weak Mumbai market on Tuesday.

The firm has a market cap of Rs 56 crore but according to the ET report the promoters are looking at a significant premium for the proposed deal.

Early this year US-based Mylan had struck a billion-dollar plus deal to buy the injectable unit of Strides Arcolab.

(Edited by Joby Puthuparampil Johnson)

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