Aurobindo Pharma acquires domestic formulation business of Veritaz for Rs 171 crore

Published On 2022-03-29 06:17 GMT   |   Update On 2022-03-29 06:17 GMT
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New Delhi: Drugmaker, Aurobindo Pharma, has recently announced the acquisition of domestic formulation business of Veritaz on a slump sale basis. The transaction is for consideration of Rs. 171 Cr on debt-free cash-free basis.

"This acquisition vehicle will greatly help Aurobindo as a launch pad for marketing biosimilar and other products in India," the company said in its recent release.

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The transaction comes into effect from 1 st April, 2022 and expected to close by May 2022.

Commenting on the development, Mr. K. Nithyananda Reddy, Managing Director, said: "I am pleased to announce the Aurobindo's entry into the domestic market with this acquisition; with this acquisition we strongly believe that with Aurobindo's ability to build a product portfolio, and with the existing and expanding distribution network of Veritaz we will be able to create a significant footprint in the domestic pharma market over the next few years".

Veritaz is a 10+ years old company with an audited turnover of Rs. 133 Cr for the period of 9 months ended Dec '21 and it had a turnover of Rs. 127 Cr for the full year FY 21. Its current product portfolio operates in an addressable market of Rs. 26,775 Cr which is an exciting space to gain market share and grow Aurobindo's business.
The company has around 40 brands across the acute and critical care segments. The total number of trademarks registered in its name is around 180. Its largest brands are Fepanil and Merogram group which clock a revenue of around Rs.31 Cr and Rs.20 Cr up to December 2021 respectively.
Currently the company caters to anti-infective and pain-management therapeutic areas and has a pipeline of products to enter into the Cardio/Diabetic and Ortho/Gynecology segments. The company has an existing sales and distribution network with 900 field force, covering more 50k retailers with nearly 1700 stockiest, presence in 23 cities, reaching out to more than 70000 doctors and empaneled with major hospitals.
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