Suven Pharma set to buy Casper Pharma for Rs 155 crore

The board of Hyderabad headquartered drug firm Suven Pharmaceuticals Ltd (SPL) has decided to acquire Casper Pharmaceuticals Pvt Ltd (CPPL) for Rs 155 crore at its meeting held on April 5.

CPPL is a Hyderabad based SEZ (special economic zone) company in the GMR Aviation SEZ next to the Hyderabad International Airport, engaged in the formulations business.

The acquisition will make CPPL a wholly-owned subsidiary of SPL.

CPPL has an installed capacity of 120 crore tablets and capsules and is ready for the United States Food and Drug Administration (USFDA) inspection expected in the next six months. As the unit is yet to reach commercially viable operations, the turnover details of the target company are not available, SPL told stock exchanges.

SPL said CPPL is engaged in manufacturing and supplying of solid oral dosage formulations including tablets, capsules and liquid oral products through contractual arrangements with customers in the United States and other regulated markets.

The acquisition of CPPL will be completed within 30 days from the closing of definitive agreements.

SPL chairman and managing director Venkateswarlu Jasti had told Moneycontrol in February first week that the acquisition of CPPL could save a significant time of 3-4 years and efforts for them to build a world-class formulations facility. The USFDA-inspection-ready facility of CPPL is expected to commence revenue generation over the 6-9 months with several long-term contracts on hand, he had said.