Aurobindo Rally Makes Reddy a Billionaire
PV Ramaprasad Reddy, the cofounder of Indian drugmaker Aurobindo Pharma, is a billionaire as the stock more than tripled in the past year to a record.
Reddy and his wife, Suneela Rani, control about 38% of Aurobindo Pharma, according to a May 26 filing to the Bombay Stock Exchange. Excluding shares pledged as collateral, their interest in the drugmaker is valued at more than $1 billion, according to the Bloomberg Billionaires Index.
Investors are betting on increased sales after the US health regulator approved its generic version of Cymbalta antidepressant in December. Its acquisition of Dublin-based Actavis Plc’s commercial operations in seven European countries this year also gives it scale and access to other markets, said Ranjit Kapadia, an analyst at Centrum Broking Pvt.
“There is a rerating that has happened,” said Mumbaibased Kapadia, who has a buy recommendation on the stock. “There is an expectation of good results.”
The Hyderabad-based drugmaker’s share price more than tripled in the last 12 months to close at a record .` 642.45. Aurobindo Pharma plans to announce its earnings for the year ended March 31 at the end of the week, it said in a statement to the stock exchange. – Bloomberg