Aurobindo Pharma Ltd is acquiring Andhra Pradesh-based manufacturer of active pharmaceutical ingredients (API) Hyacinths Pharma Pvt Ltd for an undisclosed amount, the company disclosed to the stock exchanges.
"The board has decided to acquire 100 per cent of the equity stake in Hyacinths Pharma, a company incorporated to manufacture APIs from existing shareholders. The location of the land in strategically ideal and convenient for expansion plans of the company in future," the company said in a filing.
Hyacinths Pharma's unit with land measuring some 52 acres is close to an existing plant of Aurobindo Pharma in Srikakulam district in the southern state.
Simultaneously, Aurobindo Pharma is also acquiring the remaining 25 per cent stake in Silicon Life Sciences Pvt Ltd. Aurobindo Pharma had last month raised its holding in the company to 75 per cent by acquiring another 57 per cent stake in the firm which manufactures non-sterile penems.
Aurobindo Pharma did not disclose how much the company is planning to invest for this transaction either.
In another move, as previously announced, the company has decided to transfer its injectables Unit IV business to Curepro Parenterals, a wholly owned subsidiary of the company. Such moves are usually associated with either a fundraising or asset sale.
Aurobindo Pharma, which received US FDA approvals for over eight drugs this year, has been eyeing domestic and overseas acquisitions to increase its scale and revenues.
With the latest deals, it would have acquired three firms since January this year. The company was active with its inorganic growth strategy in 2006 but went slow thereafter.
In 2009, it acquired Hyderabad-based contract research firm Trident Life Sciences Ltd and in 2006 had snapped four firms including Netherlands-based generic pharma company Pharmacin International BV, Hyderabad-based APL Life Sciences Ltd and Senor Organics Pvt Ltd, and London-based pharmaceutical manufacturing company Milpharma Ltd.
The company clocked revenues of Rs 5,855.3 crore for the year ended March 31, 2013.
Over the past one year, the Indian pharma industry has seen a spate of small deals including Vivimed acquiring Actavis Pharma's formulations unit for $20.2 million, Mortara Instruments acquiring Cardiac Science Corp for $21 million and Fresenius Kabi acquiring Goa Formulations Ltd for $36.9 million.
-- Copyright 2013 VCCircle.com. All rights reserved. This content/article is provided by Mosaic Media Ventures Private Limited and not by Reuters. All rights, including copyright, in this content/article provided by VCCircle.com are owned or controlled by Mosaic Media Ventures Private Limited. The content may not be copied, broadcast, downloaded and stored (in any medium), transmitted, adapted or changed in any way whatsoever without the prior written permission of Mosaic Media Ventures Private Limited.
Trending On Reuters
A recovery in India's credit growth could elude the country's banks until early 2016, despite an economy that in the first three months of this year is expected to have outpaced China. Full Article