Aurobindo Pharma's Apitoria to Acquire 80% Stake in A1 Biochem CRO Business for USD 17 Million
Hyderabad: Aurobindo Pharma Limited has announced that its wholly owned subsidiary, Apitoria Pharma Private Limited, has approved the acquisition of 80% ownership in the Contract Research Services (CRO) business of A1 Biochem Group at an enterprise value of USD 17 million on a debt-free and cash-free basis.
The transaction was approved at Apitoria's board meeting held on July 23, 2026 and has been disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The acquisition involves A1 Biochem Labs (India) Private Limited, the CRO business of A1 Biochem Research (India) Private Limited, and A1 Biochem Labs LLC, USA. Upon completion of the transaction, Apitoria will hold 80% ownership in A1 Biochem Labs (India) Private Limited, while the existing promoter of A1 Biochem Group will retain the remaining 20% stake. In addition, A1 Biochem Labs (India) Private Limited will acquire 100% ownership of A1 Biochem Labs LLC, USA, and the CRO business of A1 Biochem Research (India) Private Limited will be transferred to A1 Biochem Labs (India) Private Limited.
A1 Biochem Group is a Contract Research Organization (CRO) that provides chemistry services to pharmaceutical companies, biotechnology firms and academic institutions. Its capabilities include custom synthesis, medicinal chemistry, route scouting, analytical development and rapid process scale-up services. During FY2025-26, the group reported a turnover of ₹1,024.42 million and an EBITDA of ₹465.46 million. It operates two scientific laboratories located in Wilmington, North Carolina, USA, and Hyderabad, India, employs more than 90 scientists, has over 50 fume hoods, and is led by Dr. Rajendra Gadikota, who has more than 25 years of industry experience and will continue with the business after the acquisition.
Aurobindo Pharma stated that the transaction aligns with its strategic objective of expanding its presence across the Active Pharmaceutical Ingredients (API) value chain. While Apitoria is currently engaged in large-scale, regulatory-compliant API manufacturing, the acquisition of front-end research and development capabilities will enable the company to establish a dedicated Contract Research, Development and Manufacturing Organization (CRDMO) platform. The company said the acquisition will broaden its service offerings, facilitate longer customer engagement across the product life cycle, and complement its existing API manufacturing operations.
The acquisition will also provide access to an established CRO platform with a client base of over 50 customers and more than 800 completed projects in the United States, helping create an integrated CRDMO platform alongside Apitoria's existing manufacturing capabilities. The company said the transaction remains subject to the completion of conditions specified in the definitive agreements and customary regulatory approvals. It is expected to be completed within 90 to 120 days.
The acquisition will be completed through cash consideration, with Apitoria investing USD 13.6 million to acquire its 80% ownership in the A1 Biochem Group, subject to customary adjustments at the closing of the transaction. Aurobindo Pharma clarified that the acquisition is not a related-party transaction, and neither the company's promoters nor promoter group entities have any interest in the target entities or business.
The A1 Biochem Group has reported turnover of ₹608.9 million in FY2023-24, ₹1,062.2 million in FY2024-25, and ₹1,024.4 million in FY2025-26. A1 Biochem Labs (India) Private Limited was incorporated on November 11, 2021, A1 Biochem Research (India) Private Limited on July 18, 2022, and A1 Biochem Labs LLC, USA in September 2015. Besides serving customers in India and the United States, the group exports its services to the Netherlands, France and Japan, among other countries.The regulatory filing was signed by B. Adi Reddy, Company Secretary, on behalf of Aurobindo Pharma Limited.
