Aurobindo Pharma Jumps 4.5% on Reported €4.1 Billion Zentiva Acquisition by GTCR

Aurobindo Pharma shares surged 4.5% on Thursday, September 11, following a report by the Financial Times that private equity firm GTCR has finalised a €4.1 billion ($4.8 billion) deal to acquire Czech generic drugmaker Zentiva from Advent International. The deal is expected to be officially announced within days, the newspaper said, citing sources familiar with the matter.

At 12:30 PM IST, Aurobindo’s shares on the NSE were trading at ₹1,097 apiece, up from the previous session. The stock’s 52-week high is ₹1,592, while the low stands at ₹1,010. With a market capitalisation of ₹62,800 crore, the pharmaceutical firm remains under close investor scrutiny amid speculation about its strategic expansion.

Zentiva, originally established in the 15th century and nationalised in 1946, has reinvented itself as a leading manufacturer of generic and over-the-counter medicines. After management acquired a majority stake in 1998, the company focused on branded generics and now operates in over 30 countries with more than 5,000 employees. It has manufacturing facilities in the Czech Republic, Romania, and India, according to its official website.

The reported acquisition follows a series of developments in Zentiva’s ownership. Boston-based Advent International purchased the company from French pharmaceutical giant Sanofi for €1.9 billion in 2018. Bloomberg News reported last November that Advent had enlisted Goldman Sachs Group Inc. and PJT Partners Inc. to explore potential buyers, signalling renewed interest in divesting the asset.

Additionally, The Economic Times reported in August that Aurobindo Pharma was leading the race to acquire Zentiva for as much as $5.5 billion. However, Aurobindo later clarified in an official exchange filing that no binding agreements had been signed by its board.

Industry observers see the potential deal as a strategic move for Aurobindo Pharma, which has been exploring international expansion and portfolio diversification. If completed, the acquisition would mark one of the largest cross-border deals in the generics space in recent years and significantly boost Aurobindo’s presence in Europe.

The pharmaceutical sector has been witnessing heightened consolidation activity, driven by rising healthcare demands and cost pressures. Analysts believe that a successful acquisition of Zentiva would enhance Aurobindo’s scale and market reach, though the transaction’s final structure and regulatory clearances remain key factors to watch.