Aurobindo and Dr. Reddy’s each responded to a report by the Economic Times that said both were front-runners to buy bankrupt Orchid Pharma.
In separate notifications to the Bombay Stock Exchange, Aurobindo denied the claims outlined in the story, while Dr. Reddy’s said it wasn’t the company’s policy to comment on speculation.
In its notification, Aurobindo denied “the contents of the above mentioned news and they are factually incorrect.”
Dr. Reddy’s statement said the Economic Times’ story was “purely speculative” and that the company has “not made any official statements” related to the report. The company reiterated its policy not to comment on rumors or speculation.
The publication reported on Monday that both India-based companies had emerged as the front-runners in purchasing Orchid, which was a key player in the injectables and API markets. The publication, citing unnamed sources familiar with the sale, said there was interest in the company from up to eight companies and private equity firms. In October, the publication said KKR, Piramal Enterprises, Bain Capital and the pharmaceutical company Lupin were interested in Orchid’s assets.
"Orchid Pharma has two API manufacturing facilities in India and three formulation manufacturing sites in India,” the Economic Times quoted the source as saying. “These are all approved by the U.S. Food & Drug Administration, the U.K.’s Medicines and Healthcare Products Regulatory Agency and other regulators and agencies.”