Drug firm Laurus Labs on Wednesday said it has signed definitive agreements with the Eight Roads Ventures, VenturEast Proactive Fund and VenturEast Life Fund III to acquire 72.55 pc stake in biotech firm Richcore Lifesciences for a cash consideration of Rs 246.67 crore.
The acquisition marks the company’s entry into the broader biologics and biotechnology segments, providing it access to its high growth areas, globally and in India, Laurus Labs said in a statement.
Following the successful closure of the transaction, Richcore will be renamed as Laurus Bio Pvt Ltd, it added.
The current promoters of Richcore led by Subramani Ramachandrappa will continue as promoters and will be responsible for its management and operations, Laurus Labs said.
Laurus Labs will fund the acquisition from its internal accruals and this acquisition will be revenue and PAT accretive, it added.
“We are very excited on this acquisition, as this gives us entry into the high barrier biotechnology segment. Laurus Labs will bring scale to Richcore’ s operations and can become a major player in the biotech contract development and manufacturing organisation (CDMO) space,” Laurus Labs CEO Satyanarayana Chava said.
This will also help the company in becoming a leader in biocatalysis as Richcore brings significant expertise in enzyme development for pharmaceutical and other industrial applications, he added.
“Leveraging the synergies arising from Laurus’s experience and Richcore’s innovation, we plan to build scale as we continue to serve our existing customers and enter new biotech segments,” Richcore Lifesciences Pvt Ltd Chairman and MDSubramani Ramchandrappa said.
Shares of Laurus Labs closed at Rs285.05per scrip on BSE, down 1.62 per cent over previous close.
Source: Business-Standard