Alembic buys UTI-focused Utility Therapeutics in USD 12 million deal

The strategic acquisition is aimed at marketing both USFDA-approved and under-development products owned by Utility in the United States.

In a regulatory filing with the BSE, Alembic confirmed that the acquisition will be completed within approximately 30 days. The total consideration is structured as a cash payment along with a profit share out of future profits.

The acquisition is valued at around USD 12 million, to be paid in a staggered manner over period of time, depending on milestone achievements.

Utility Therapeutics is involved in the development and approval of two brand pharmaceutical products for the treatment of urinary tract infections (UTI).

-“Pivya” is an FDA approved product to treat uncomplicated UTIs in the US market.

-“MEC” is a product in development for the treatment of complicated UTIs in the US market.

As a product development company they have minimal turnover in last 3 years.

Alembic stated that the the proposed acquisition of Utility (by wholly owned subsidiary i.e. Alembic Pharmaceuticals Inc.) does not fall under related party transaction.

The promoter / promoter/ promoter group are not interested in the transaction.

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Headquartered in India, Alembic Pharmaceuticals Limited is a vertically integrated research and development pharmaceutical company. It is a publicly listed company that manufactures and markets generic pharmaceutical products all over the world. Alembic's state of the art research and manufacturing facilities are approved by regulatory authorities of many developed countries including the USFDA.

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