Aurobindo Pharma, after market hours on Monday, 28 March 2022, announced the acquisition of Veritaz Healthcare's business and certain assets for a cash consideration of Rs 171 crore.
The pharmaceutical company is planning to expand its footprint into the Indian domestic formulations market. The transaction will be executed for a consideration of Rs 171 crore on a debt-free cash-free basis. The transaction comes into effect from 1 April 2022 and expected to close by May 2022.
Aurobindo Pharma added that this acquisition will help it to launch and market biosimilar & other products in India. Nithyananda Reddy, the managing director (MD) of Aurobindo Pharma, said, I am pleased to announce Aurobindo's entry into the domestic market with this acquisition; with this acquisition we strongly believe that with Aurobindo's ability to built a product portfolio, and with the existing and expanding distribution network of Veritaz, we will be able to create a significant foot print in the domestic pharma market over the next few years.
Veritaz Healthcare operates in pharmaceutical industry in India and sells branded generic formulations and other health care related products. The company has around 180 trademarks of which 40 are marketed as of now in two different Divisions. Anti-infective as well as pain management are the major portfolios which are contributing to the revenue of the firm.
Veritaz Healthcare generated a turnover of Rs 127.02 crore in FY21 at a CAGR of 3.4% in previous 3 years and for FY22 (upto December 2021). Veritaz generated a revenue of Rs 133.18 crore, recording a growth of 4.9% Y-o-Y. The business has more than 900 people including 700 sales reps and has stockiest more than 1,700 and other distribution related infrastructure.
Shares of Aurobindo Pharma slipped 3.27% to Rs 683.75 on BSE. Hyderabad-based Aurobindo Pharma develops, manufactures and distributes generic pharmaceuticals, branded specialty pharmaceuticals and active pharmaceutical ingredients.
The company's consolidated net profit slumped 79.5% to Rs 604.29 crore on a 5.7% decline in net sales to Rs 5,949.83 crore in Q3 2021 over Q3 2020.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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