Quick Look in Unichem – Optimus deal

Unichem Laboratories (Unichem), a Rs. 670 crore pharma major, has entered into an agreement to acquire 20% equity stake in the API and intermediate business of Hyderabad based Optimus group (Optimus).

The transaction will give Unichem access to Optimus’ US FDA approved API manufacturing facilities, and at the same time, Optimus will gain from the extensive knowledge base and industry best practices of Unichem, making the deal a win-win for both Unichem and Optimus.

Trans-Continental Capital Advisors Private Limited (TCCA) and Genesis Management Consultancy Services Private Limited (GMCS) acted as financial advisors to the transaction. TCCA, a Mumbai based advisory firm has recently acted as an advisor in the Rs. 500 crore worth acquisition of Kimplas Piping Systems by Germany’s Norma group.

Unichem is amongst the oldest Indian pharma companies, known for its specialty pharmaceutical business. The company manufactures and markets a large basket of generic pharmaceutical formulations in several regulated markets across the world.

The Optimus group was founded by Dr. D. Srinivas Reddy in 2004 and operates as manufacturer of formulations, API’s and intermediates for Indian and other regulated/RoW markets. Presently, the group’s API vertical has its manufacturing facilities located in Hyderabad and Vishakhapatnam, having specialization in novel/polymorph chemistry and process engineering.