Alkem Laboratories Ltd has announced the acquisition of Adroit Biomed, a dermatology and cosmetology-focused company, and Bombay Ortho Industries, a medical technology firm, in two separate deals. The acquisitions will strengthen Alkem’s presence in high-growth therapeutic segments and enhance its manufacturing capabilities in the orthopedic implant space.
Alkem will acquire Adroit Biomed for ₹140 crore, payable in two tranches, with the transaction expected to close by 1 April. Adroit, which reported a turnover of ₹53.55 crore in FY24, will help Alkem expand its dermatology and cosmetology portfolio, market reach, and omni-channel presence.
The amount of ₹140 will be paid in “two tranches, subject to adjustment on account of debt & debt like items and change in normalized working capital as on closing date and other appropriate closing adjustments,” Alkem said in a statement accompanying its December quarter (Q3FY25) earnings.
The company will also acquire Bombay Ortho Industries for ₹147 crore, payable in four tranches, with the deal set to be completed by 30 June. Established in 2021, Bombay Ortho specializes in hip and knee implants, a key segment in India’s growing medical device industry.
Bombay Ortho “is a strategic investment which will help to gain manufacturing capabilities to participate in growing orthopedic space and leveraging Bombay Ortho’s expertise within the hip and knee implants segment,” Alkem said.
For Q3FY25, Alkem reported a 6% year-on-year increase in net profit to ₹641 crore, though profit declined 9% sequentially. Revenue stood at ₹3,467 crore, up 1.4% YoY, but down 2.3% quarter-on-quarter.
“The acquisition of Adroit will enable Alkem to diversify its portfolio, enhance market penetration and strengthen presence in the growing segments of dermatology and cosmetology. Also, our investment in Bombay Ortho is in line with our strategy for Medtech in India,” B.N. Singh, chairman, Alkem, said in a statement.
“Medtech is a fast-growing space in India and the patient need for quality products is high. Through our acquisitions in the medical devices segment, we aim to meet the growing demand for implants in India,” Sandeep Singh, managing director, Alkem, added.
Alkem has presence in anti-infectives, gastrointestinal, pain management drugs, and supplements. Its portfolio of products in chronic therapies also includes medicines for diabetes, neurology, cardiology, dermatology and urology, according to the company website.
Source: Mint