India Based Pharma Companies In Race To Buy Athenex, Shares Surge

Athenex Inc ATNX shares climbed during the after-hours session as India's Intas Pharmaceuticals and Dr Reddy's Laboratories Ltd RDY are reportedly in talks to acquire Athenex.
According to the Economic Times report, the deal could be valued at $200-250 million as the U.S.-based biotechnology firm looks to sell a controlling stake.
The two Indian pharma companies are competing with a handful of mid-market healthcare-focused private equity funds in the US, people with knowledge of the matter told ET.
Athenex had hired investment advisory firm Cowen Inc to run a formal process to find a buyer.
"A formal process has started, and the first round of offers have come in," said one of the people. "Intas and Dr Reddy's are the two Indian firms in the race. A transaction could be concluded during the current quarter."
During its recent earnings release, Athenex reported Q2 product sales of $25.8 million, +26% Y/Y.
It is said to have raised $85 million in total transaction value in Q2 for a total of $125 million in proceeds from sales of non-core assets in 1H 2022.
It maintains the FY22 product revenue guidance range of 20-25% growth Y/Y.
Price Action: ATNX shares closed 69.9% higher at $1.07 during after-hours trading on Thursday.