Alembic Pharma buys out partner stake in Aleor Dermaceuticals

Industry:    2022-03-30

Alembic Pharmaceuticals on Tuesday said it has acquired the balance 40% stake in Aleor Dermaceuticals from its JV Partner Orbicular Pharmaceutical Technologies to strengthen its skin-related manufacturing and marketing footprint.

Alembic didn’t disclose the financial details of the acquisition citing confidentiality.

Hyderabad-based Aleor had revenues of Rs 25.5 crore in the nine months ended December 2021.

Aleor has product offerings across cream, gel, ointment, shampoo, lotion, solutions, sprays, foams, microsponge and nanoparticulate platform-based products.

Aleor’s formulation manufacturing facility located at Karakhadi, Gujarat, India is an USFDA inspected facility and has the Establishment Inspection Report (EIR) in place, and sells its products in the US market.

The Board of Directors of Aleor has been reconstituted with Orbicular nominees resigning from the Board.

The Board of Alembic has also approved, subject to approval from NCLT and other regulatory bodies, the merger of Aleor with Alembic.

The amalgamation will integrate business operations and provide impetus to the existing portfolio of Alembic.

The acquisition augurs well with the strategic planning and growth
trajectory set by the company to capture higher market share in various segments of its pharmaceutical business.

“This will further bolster our global reach with cutting-edge research and development in the derma space and enhance our integrated dermatology platform with a comprehensive collection of scientifically-proven products for daily skincare regimens and peri-procedural use,” said Pranav Amin, managing director of Alembic.

According to IQVIA prognosis report, the dermatology market is forecasted to grow in double digits and increase its market share within the pharma market.

The acquisition will unlock the full potential of Aleor and drive significant value creation through synergies with Alembic.

“We thank Alembic for the enriching partnership and now Orbicular would bolster its development capabilities independently in advancing several interesting and exciting opportunities in complex products,” said MS Mohan, managing director of Orbicular.

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