Transaction Details

  • Acquirer: Apitoria Pharma Private Limited, wholly owned subsidiary of Aurobindo Pharma Limited
  • Target: 80% ownership in the Contract Research Services business of A1 Biochem Group
  • Enterprise Value: USD 17 million on debt-free and cash-free basis
  • Investment Amount: USD 13.6 million for 80% ownership, subject to adjustments at closing
  • Consideration: Cash consideration
  • Approval Date: July 23, 2026 (board meeting of Apitoria Pharma Private Limited)
  • Expected Completion: 90-120 days from approval date

Target Business Description

A1 Biochem Group is a Contract Research Organization (CRO) providing high-quality chemistry services including:

  • Custom synthesis
  • Medicinal chemistry
  • Route scouting
  • Analytical development
  • Rapid process scaleup services

Clients: Pharmaceutical companies, biotechs, and academic institutions primarily in USA

Operations: Two scientific laboratories located in Wilmington, North Carolina, USA and Hyderabad, India

Infrastructure: 50+ fume hoods and 90+ scientists

Leadership: Dr. Rajendra Gadikota (25+ years experience) who will continue with the group post-acquisition

Corporate Structure Post-Acquisition

  • Apitoria will hold 80% ownership in A1 Biochem Labs (India) Private Limited, India
  • Existing promoter of A1 Biochem Group retains 20% ownership
  • A1 Biochem Labs (India) Private Limited, India will acquire 100% ownership of A1 Biochem Labs LLC, USA
  • A1 Biochem Labs (India) Private Limited, India will acquire the business of A1 Biochem Research (India) Private Limited, India

Financial Performance of A1 Biochem Group

Turnover:

  • FY 2023-24: INR 608.9 million
  • FY 2024-25: INR 1,062.2 million
  • FY 2025-26: INR 1,024.4 million

EBITDA FY 2025-26: INR 465.5 million

Incorporation Details

  • A1 Biochem Labs (India) Private Limited: Incorporated November 11, 2021
  • A1 Biochem Research (India) Private Limited: Incorporated July 18, 2022
  • A1 Biochem Labs LLC, USA: Incorporated September 2015

Geographic Presence

Primary operations in USA and India, with services exported to Netherlands, France, Japan and other countries

Business Rationale

  • Aligns with strategic objective of expanding presence in Active Pharmaceutical Ingredients (API) business lifecycle
  • Creates dedicated Contract Research, Development and Manufacturing (CRDMO) platform
  • Expands portfolio enabling full service, longer life cycle engagement with customers
  • Complements current API manufacturing business of Apitoria
  • Grants access to existing CRO platform with 50+ client base and 800+ completed projects in USA

Client Base and Projects

  • 50+ client base primarily in USA
  • 800+ completed projects

Regulatory Aspects

  • Related Party Transaction: Does not fall under related party transaction
  • Promoter Interest: No interest from promoter/promoter group/group companies in target entities
  • Government Approvals: Subject to customary approvals
  • Conditions: Subject to completion of conditions prescribed under Definitive Agreements

Ownership Structure

  • Apitoria Pharma Private Limited → 80% → A1 Biochem Labs (India) Private Limited, India
  • Existing Promoter → 20% → A1 Biochem Labs (India) Private Limited, India
  • A1 Biochem Labs (India) Private Limited, India → 100% → A1 Biochem Labs LLC, USA

#Tags #AurobindoPharma #Acquisition #SEBIDisclosure #RegulatoryCompliance #M&A #Positive