The drug maker on Saturday announced that its board has approved acquisition of 51% stake in Hyderabad-based GLS Pharma for a cash consideration of Rs 28.05 crore.
GLS Pharma is a pharmaceutical company engaged in the business of oncology products which include orals and injectables used in chemotherapy for solid malignancies, chemotherapy for hematological malignancies and chemo supportive products.Aurobindo Pharma said that the investment is undertaken to expand the foothold of the company in oncology business in the domestic market and for inorganic addition to capacity and revenues in oncology business.
The company added that it has a call option to acquire the balance 49% equity shares of GLS, after a period of 3 years but before 5 years from the current acquisition, at fair value determined at such point in time.
GLS has an India centric approach with pan India availability in more than 400 institutions. Dealing in 65 generic Oncology molecules and established brands, GLS covers all major corporates and State And Central Government institutions with around 10,000 specialists Oncologists and physicians on their call list.
GLS had total sales of Rs 25.8 crore during FY ended 31 March 2022, Rs 26.4 crore during FY ended 31 March 2021 and Rs 23.6 crore during FY ended 31 March 2020.
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Aurobindo Pharma develops, manufactures and distributes generic pharmaceuticals, branded specialty pharmaceuticals and active pharmaceutical ingredients. Its consolidated net profit declined 28.1% to Rs 576.46 crore on a 3.3% fall in net sales to Rs 5,795.34 crore in Q4 FY22 over Q4 FY21.
Shares of Aurobindo Pharma were down 1.02% at Rs 510.30 on the BSE.
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