Aurobindo Pharma Ltd has announced the acquisition of the domestic formulation business of Veritaz Healthcare for a consideration of Rs. 171 crore on debt-free cash-free basis. With this acquisition, Aurobindo marked its first step to set its footprint in the Indian domestic market as announced earlier.
The transaction comes into effect from April 1, 2022 and is expected to close by May 2022. This acquisition vehicle will greatly help Aurobindo as a launch pad for marketing biosimilar and other products in India.
Veritaz is a 10+ years old company with an audited turnover of Rs. 133 crore for the period of 9 months ended December 2021 and it had a turnover of Rs. 127 crore for the full year FY 2021. Its current product portfolio operates in an addressable market of Rs. 26,775 crore which is an exciting space to gain market share and grow our business. The company has around 40 brands across the acute and critical care segments. The total number of trademarks registered in its name is around 180. Its largest brands are Fepanil and Merogram group which clock a revenue of around Rs. 31 crore and Rs. 20 crore up to December 2021 respectively.
Currently, the company caters to anti-infective and pain-management therapeutic areas and has a pipeline of products to enter into the cardio/diabetic and ortho/gynaecology segments. The company has an existing sales and distribution network with 900 field force, covering more 50,000 retailers with nearly 1,700 stockiest, presence in 23 cities, reaching out to more than 70,000 doctors and empaneled with major hospitals.