Orchid rumours: Aurobindo says reports inaccurate; Dr Reddy's won't comment on speculation
The Indian drug manufacturer issued the statement today telling the Bombay stock Exchange (BSE) an Economic Times story suggesting it is one of seven firms looking at Orchid is “factually incorrect.”
Dr Reddy's, which was mentioned as a potential suitor in the ET story, also responded.
The firm said the reports are “purely speculative” adding that it is company policy not to comment on rumours.
The BSE asked Orchid for clarification after the Economic Times story.
In response, Orchid said, “In terms of the provisions of insolvency and Bankruptcy Code (IBC) and regulations, the Resolution Professional has called for an expression of interest (EoI) for the submission of the resolution plan and the responses are under scrutiny.”
The firm added: “The news item published in Economic Times date December 18,2017 referred to in your letter are not released by us.”
Investors started bankruptcy proceedings against Orchid on August 22.
The following month, India’s National Company Law Tribunal appointed an interim resolution professional (IRP) to manage the insolvency process.
In October, a full time resolution professional (RP) was appointed and tasked with assessing all solutions to Orchid's financial woes, including seeking expressions of interest from companies interested in a takeover.
Orchid makes injectable drugs and active pharmaceutical ingredients (API) for the domestic and export markets.
The firm has ingredient plants in Alathur, Chennai and a finished dosage form site in nbeighbouring Irungattukottai.
According to its website – have all passed inspections by the US Food and Drug Administration (FDA) and the UK MHRA.