Aurobindo Pharma acquires Domestic Formulations Business of Veritaz Healthcare

Aurobindo Pharma Ltd has announced the proposed acquisition of domestic formulations business of Veritaz on a slump sale basis. With this acquisition, Aurobindo has poised to set its footprint in the Indian Domestic Formulations Market announced earlier. The transaction is agreed at a consideration of Rs. 171 Crs on debtfree cash-free basis. The transaction comes into effect from 1st April 2022 and expected to close by May, 2022. This acquisition vehicle will greatly help us as a launch pad for marketing biosimilar and other products in India.

Veritaz is a 10+ years old business with an audited turnover of Rs. 133 Crs for the period of 9 months ended Dec '21 and it had a turnover of Rs. 127 Crs for the full year FY 21. The addressable market of Veritaz's current product portfolio is around Rs.26,775 Crs which is an interesting space for Aurobindo to grow our business. Veritaz has around 40 brands marketed across the acute and critical care therapeutic segments. The total trademarks registered in its name are around 180. Its largest brands are Fepanil and Merogram group which clocked a revenue of around Rs.31 Crs and Rs.20 Crs up to December 2021 respectively.

Currently Veritaz caters anti-infective and pain-management therapeutic areas and has a pipeline of products to enter into the Cardio/Diabetic and Ortho/Gynecology segments. Veritaz has an existing sales and distribution network with 900 field force, covering more than 50k retailers with nearly 1700 stockiest, presence in 23 cities, reaching out to more than 70,000 doctors and empaneled with major hospitals.

Commenting on the development, Mr. K. Nithyananda Reddy, Managing Director, 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".

Shares of Aurobindo Pharma Limited was last trading in BSE at Rs. 706.85 as compared to the previous close of Rs. 718.40. The total number of shares traded during the day was 166469 in over 4851 trades.

The stock hit an intraday high of Rs. 726.00 and intraday low of 702.00. The net turnover during the day was Rs. 119279438.00.

Source : Equity Bulls

Keywords

AurobindoPharma INE406A01037 Acquisition Veritaz DomesticFormulationsBusiness