Aurobindo Pharma Ltd, through its wholly owned subsidiary Apitoria Pharma Pvt Ltd, has acquired the contract research services business of A1 Biochem Group for ₹147 crore, strengthening its presence across the active pharmaceutical ingredient (API) lifecycle.
As part of the transaction, Apitoria now holds an 80% stake in A1 Biochem Labs (India) Pvt Ltd, while the remaining 20% is held by Rajendra Gadikota, former promoter of A1 Labs India. The transaction involved a cash consideration of $15.247 million.
Acquisition adds research platform
A1 Biochem Labs India, through its wholly owned subsidiary A1 Biochem USA Inc, has also acquired 100% of the membership interest in A1 Biochem Labs LLC, a US-based step-down subsidiary operating from Wilmington, North Carolina.
A1 Biochem Labs LLC provides contract research and chemistry services to pharmaceutical and biotechnology companies, including custom synthesis and medicinal chemistry services from its scientific laboratory in the US.
Existing CRO platform strengthens portfolio
Through the acquisition, Apitoria gains access to an established contract research organisation (CRO) platform with a client base of about 50 customers and experience of completing more than 800 projects across India and the US.
The transaction is expected to complement Apitoria’s existing manufacturing capabilities and expand its portfolio of offerings, enabling longer lifecycle engagement with customers.
Focus on integrated CRDMO platform
Apitoria and A1 Labs India are engaged in large-scale, regulatory-compliant API manufacturing. The acquisition of front-end research and development capabilities will enable the group to create a dedicated contract research, development and manufacturing organisation (CRDMO) platform.
The integrated platform is expected to provide customers with a broader range of services spanning research, development and manufacturing, while supporting longer-term engagement across the API lifecycle.
Strategy targets API lifecycle
Aurobindo Pharma said the transaction aligns with its strategic objective of expanding its presence across the lifecycle of the API business.
The acquisition is complementary to the existing API manufacturing operations of Apitoria and A1 Labs India and is intended to strengthen the group’s capabilities across research, development and manufacturing.
US business acquired through membership interest
A1 Biochem Labs LLC does not have share capital represented by shares. Accordingly, A1 Biochem USA Inc acquired 100% of the membership interest in the US entity for the agreed consideration.
Following the transaction, A1 Biochem USA Inc holds full ownership of A1 Biochem Labs LLC, providing the group with an established US-based contract research and chemistry platform.