Aurobindo Pharma on March 28, in a regulatory filing, announced that it has acquired the business and certain assets of Veritaz Healthcare for cash consideration of Rs 171 crore.
"The transaction is agreed at a consideration of Rs 171 crore on debt-free cash free basis. The transaction comes into effect from 1st April 2022 and expected to close by May, 2022," Aurobindo said.
Notably, Veritaz sells branded generic formulations and other healthcare related products in the Indian market. Its sales and distribution network covers around 50,000 retailers, spread across 23 cities.
The acquisition of Veritaz "will greatly help us as a launch pad for marketing biosimilar and other products in India", a statement issued by Aurobindo said, adding that the deal is in line with the company's target to expand its footprint in the the Indian domestic formulations market.
Veritaz generated a turnover of Rs 1270.2 million in FY21 at a CAGR of 3.4 percent in previous 3 years, along with a revenue of Rs 1331.8 million, marking a 4.9 percent growth, for FY22 (up to December 2021), Aurobindo noted in its exchange filing.
Aurobindo's managing director Nithyananda Reddy said the acquisition of select-assets of Veritaz will strengthen the company's "ability to built a product portfolio".
"With the existing and expanding distribution network of Veritaz, we will be able to create a significant foot print in the domestic pharma market over the next few years," Reddy added.