HYDERABAD: As part of its strategy to foray into the Indian formulations market, Hyderabad-based pharma major Aurobindo Pharma is acquiring the domestic formulations business of another Hyderabad-based company Veritaz Healthcare, which is promoted by its promoters, on a slump sale basis for a consideration of Rs 171 crore on a debt-free, cash-free basis.
The acquisition, which comes into effect from April 1, 2022 and is expected to close by May 2022, is a part of Aurobindo’s strategy to create its footprint in the Indian pharma market, the Hyderabad-based pharma biggie said.
“This acquisition vehicle will greatly help Aurobindo as a launch pad for marketing biosimilar and other products in India,” Aurobindo Pharma said in regulatory filing on Monday.
Veritaz is a 100% subsidiary of Trident Chemphar Limited, which is owned by RPR Enterprises that is represented by RPR Sons Advisors Private Limited and jointly held by P Suneela Rani, the promoter group of the Aurobindo Pharma.
Veritaz, which was set up in 2006, posted an audited turnover of Rs 133 crore for the nine-month period ended December 31, 2021 and its current product portfolio operates in an addressable market of Rs 26,775 crore, which Aurobindo is eyeing.
Veritaz currently caters to anti-infective and pain-management therapeutic areas with a pipeline of products that will give it an entry into the cardio-diabetic and ortho and gynaecology segments.
The company has around 40 brands across the acute and critical care segments with brands like Fepanil and Merogram being the largest. It has around 180 trademarks registered in its name.
The company has an existing sales and distribution network with a field force of about 900 people covering more 50,000 retailers with nearly 1700 stockists with a presence in 23 cities reaching out to more than 70,000 doctors and empaneled with major hospitals.
