Torrent Pharma has hit a new high today at Rs.607.70, zooming up in the early morning trade by over 9%. It has since then come off the highs and is currently at Rs.575. Volumes are up 4 times.

The stock hit a high, celebrating the news that the CCI has approved the company’s proposed Rs 2,000 crore acquisition of Elder Pharma's formulations business in India and Nepal. The CCI has stated that it did not anticipate any “appreciable adverse effect on competition in India” with this deal.

The business to be acquired by Torrent comprises approximately 30 brands across segments of women's healthcare, nutraceuticals and pain & wound management.  The manufacturing know-how and the intellectual property associated with the business would also be transferred to Torrent under the deal . The company approached CCI after signing the ‘Business Transfer Agreement’ Elder on 13^th Dec’13.

Torrent had posted good Q3FY14 numbers, showing a 41% (YoY) rise in its consolidated net profit at Rs.158 core and this was on the back robust net sales at Rs.990 crore v/s Rs.768 crore in Q3FY13. Its branded formulations have shown a 15% (YoY) growth and Contract manufacture has risen 19%. Total sales in India rose 16% and exports went up 38%. In terms of break-up of the exports, US business reported growth of 61%, Europe (incl.Heumann) 59%, Brazil growth 26% and Rest of the World, including Russia, CIS, Mexico & Canada 9%. 

As per AIOCD, Torrent grew at 12% during the quarter compared to covered market growth of 5% and Indian Pharmaceutical growth of 5%. For YTD December 2013, the revenues increased by 26% to Rs. 2,959 crores compared with Rs. 2,341 crores for the corresponding period last year. Profit before Taxes grew by 25% to Rs. 527 crores compared to Rs. 423 crores during the same period last year.