05 Nov 2013, BioSpectrum Bureau , BioSpectrum
Singapore: Hyderabad-based mid-sized pharmaceutical firm Granules India has acquired Auctus Pharma in an all-cash deal worth $20 million (Rs 120 crore).
Hyderabad-based Auctus Pharma is Granules' first-ever acquisition and operates as a separate division initially. Granules has said that the company will fund 20 percent of the deal amount through internal accruals and the rest through debt.
Mr V V S Murthy, chief financial officer of Granules, said that Granules will effectively save at least four-to-five years by acquiring Auctus Pharma, which possesses US food and drug administration (FDA) and WHO-GMP approved facilities.
Granules' managing director Mr Krishna Prasad said that the acquisition was a right fit and helped the company to diversify its product portfolio.
Auctus Pharma, which reported $20 million (Rs 120 crore) of revenue last fiscal, has two manufacturing facilities, including a US FDA-approved active pharmaceutical ingredients (API) facility at Visakhapatnam and an intermediates facility in Hyderabad. Its product portfolio includes 12 active pharmaceutical ingredients and key intermediates.