Aurobindo Pharma's Apitoria to Acquire 80% Stake in A1 Biochem Group for $17 Mn
Advertisement
Apitoria Pharma will invest $13.6 Mn to acquire an 80% ownership interest in the CRO business of A1 Biochem Group, based on an enterprise valuation of $17 Mn on a debt-free and cash-free basis.
Through its subsidiary Apitoria Pharma, Aurobindo Pharma, a Hyderabad-based multinational pharma company, is acquiring an 80% stake in A1 Biochem Group, a US-headquartered CRO, to strengthen its contract research capabilities, expand its CRDMO platform, and deepen customer engagement across the pharmaceutical development lifecycle.
The $17 Mn transaction is expected to support the company's strategy of building an integrated Contract Research, Development and Manufacturing Organisation (CRDMO) platform while expanding its footprint across the Active Pharmaceutical Ingredients (API) value chain.
Under the agreement, Apitoria Pharma will invest $13.6 Mn to acquire an 80% ownership interest in the CRO business of A1 Biochem Group, based on an enterprise valuation of $17 Mn on a debt-free and cash-free basis.
The transaction will be completed through cash consideration and is expected to close within 90 to 120 days, subject to customary approvals and conditions.
A1 Biochem Group comprises A1 Biochem Labs (India), the CRO business of A1 Biochem Research (India), and A1 Biochem Labs LLC in the United States.
Following completion of the transaction, Apitoria will own 80% of A1 Biochem Labs (India), while the existing promoter will retain the remaining 20% stake.
A1 Biochem Labs (India) will also acquire full ownership of A1 Biochem Labs LLC and the CRO business of A1 Biochem Research (India).
The company provides chemistry-focused research services to pharmaceutical companies, biotechnology firms and academic institutions.
Its offerings include custom synthesis, medicinal chemistry, route scouting, analytical development and rapid process scale-up.
The business operates scientific laboratories in Wilmington, North Carolina, and Hyderabad, employing more than 90 scientists across facilities equipped with over 50 fume hoods.
It has completed more than 800 projects for over 50 clients in the United States while also exporting research services to countries including the Netherlands, France and Japan.
Aurobindo Pharma said the acquisition supports its objective of expanding its presence across the life cycle of the API business by integrating front-end research capabilities with its existing manufacturing expertise.
The company also clarified that the acquisition is not a related-party transaction, and neither its promoters nor group companies have any interest in the target entities.
Stay tuned for more such updates on Digital Health News
