Laurus labs to acquire 72.55 percent stake in Richcore Lifesciences for Rs 246.7 crores
Hyderabad: Laurus Labs, has recently announced that the company has signed a definitive agreement to acquire a majority stake in Richcore Lifesciences Pvt Ltd.
This acquisition marks Laurus Labs' entry into the broader biologics and biotechnology segments, providing the company access to its high growth areas, globally and in India. Laurus Labs will help and drive Richcore to achieve scale and improve product offerings.
With this acquisition, Laurus adds a fourth revenue stream to its three existing divisions - API, Formulations and Synthesis. Following the successful closure of the transaction, Richcore will be renamed to Laurus Bio Pvt Ltd. Richcore has large scale fermentation capabilities and manufactures animal origin free (AOF) recombinant products. These products help vaccine, insulin, stem-cell based regenerative medicine and other biopharma companies eliminate dependency on animal and human blood derived products and in turn produce safer medicines. Richcore is currently in its growth phase and its second manufacturing plant near Bengaluru is expected to be completed by 31 March 2021. Richcore has raised early and growth stage funding from Eight Roads Ventures, VenturEast Proactive Fund and VenturEast Life Fund III.
Laurus Labs has signed a definitive agreement to acquire 72.55% of Richcore's shares from Eight Roads Ventures and VenturEast for a value of Rs. 246.7 crores. The current promoters of Richcore led by Mr. Subramani Ramachandrappa will continue as promoters of Richcore and will be responsible for its management and operations. Laurus Labs will fund the acquisition from its internal accruals and this acquisition will be revenue and PAT accretive.
Commenting on the development, CEO of Laurus Labs Dr. Satyanarayana Chava said, "we are very excited on this acquisition, as this gives us entry into high barrier biotechnology segment. Laurus Labs will bring scale to Richcore' s operations and can become a major player in the biotech CDMO space . This will also help Laurus in becoming a leader in biocatalysis as Richcore brings significant expertise in enzyme development for pharmaceutical and other industrial applications"