Aurobindo Pharma Ltd, through its wholly owned subsidiary Apitoria Pharma Pvt Ltd, will acquire an 80% stake in the Contract Research Services business of A1 Biochem Group.
The acquisition will be completed within 90 to 120 days for cash consideration at an enterprise value of $17 million on a debt-free and cash-free basis.
Building CRDMO platform
A1 Biochem Group is a Contract Research Organisation (CRO) serving pharmaceutical companies, biotechnology firms and academic institutions, primarily in the US.
Its services include custom synthesis, medicinal chemistry, route scouting, analytical development and rapid process scale-up.
Transaction details
Upon completion of the transaction, Apitoria will hold an 80% stake in A1 Biochem Labs (India) Pvt Ltd. The existing promoter will retain the remaining 20%.
A1 Biochem Labs (India) will own 100% of A1 Biochem Labs LLC, USA, and A1 Biochem Research (India) Pvt Ltd.
Business profile
A1 Biochem Group reported a turnover of ₹102 crore and EBITDA of ₹47 crore in FY26.
The group operates two laboratories in Wilmington, North Carolina, and Hyderabad. It has more than 50 fume hoods and employs 90 scientists.
Strategic expansion
Dr. Rajendra Gadikota, who has over 25 years of experience in contract research, will continue to lead the business after the acquisition.
Apitoria currently focuses on large-scale, regulatory-compliant Active Pharmaceutical Ingredient (API) manufacturing.
Strengthening capabilities
The acquisition will enable Apitoria to establish a dedicated Contract Research, Development and Manufacturing Organisation (CRDMO) platform.
The company said the transaction will complement its existing API business by adding front-end research and development capabilities and enabling longer-term customer engagement through an expanded service portfolio.
Company background
Aurobindo Pharma Ltd is a leading pharmaceutical company with a diversified portfolio of formulations and APIs. Apitoria Pharma Pvt Ltd is its wholly owned subsidiary engaged in API manufacturing.