Aurobindo Pharma Subsidiary Acquires 80% Stake in A1 Biochem Group to Build CRDMO Platform
Apitoria Pharma Private Limited, a wholly owned subsidiary of Aurobindo Pharma Limited, has approved the acquisition of an 80% stake in the Contract Research Services business of the A1 Biochem Group. The transaction, valued at an enterprise value of USD 17 million on a debt-free and cash-free basis, aims to bolster the Company's presence in the life cycle of Active Pharmaceutical Ingredients (API).The acquisition targets the CRO business of the A1 Biochem Group, which provides high-quality chemistry services to pharmaceutical companies, biotechs, and academic institutions. These services include custom synthesis, medicinal chemistry, route scouting, analytical development, and rapid process scaleup services. The A1 Biochem Group comprises three entities: A1 Biochem Labs (India) Private Limited, the business of A1 Biochem Research (India) Private Limited, and A1 Biochem Labs LLC in the USA.
Upon closing the transaction, Apitoria will hold 80% ownership in A1 Biochem Labs (India) Private Limited, with the existing promoter retaining the remaining 20%. Furthermore, A1 Biochem Labs (India) Private Limited is set to acquire 100% of A1 Biochem Labs LLC, USA, while simultaneously taking over the CRO business of A1 Biochem Research (India) Private Limited.
The A1 Biochem Group operates through two scientific laboratories located in Wilmington, North Carolina, USA, and Hyderabad, India, maintaining a presence across both countries. The group has also expanded its services globally, exporting to markets including Netherlands, France, and Japan.
Financial performance metrics for the Target Business are detailed below:
| Metric | Details |
|---|---|
| Target Industry | Pharmaceuticals industry (CRO business) |
| Current Turnover (FY2025-26) | INR 1,024.42 Mn |
| EBITDA (FY2025-26) | INR 465.46 Mn |
| Operational Scale | 90+ scientists and over 50 fume hoods |
The transaction aligns with Aurobindo Pharma Limited's strategy to expand its commitment to the API business, transitioning from current large-scale manufacturing toward developing a dedicated Contract Research, Development and Manufacturing (CRDMO) platform. The acquisition offers access to an established CRO platform that has served over 50 clients in the USA and completed more than 800 projects.
Apitoria Pharma Private Limited will invest USD 13.6 Million for its 80% ownership in the A1 Biochem Group, subject to adjustments upon closing. The estimated time period for completing the acquisition is set between 90 and 120 days.
AUROPHARMA Stock Price Movement
Shares of Aurobindo Pharma Limited slipped today by 0.87% to settle at ₹1523.4, shedding ₹13.40 during the session. The equity saw a trading range between ₹1513 and ₹1539.6, with a total traded volume registering 431,250 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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