Brooks Laboratories Ltd is looking to sell its 49 percent stake in Brooks Steriscience Ltd, a joint venture with Steriscience Specialties, sources have told Moneycontrol.
The move comes after OneSource Specialty Pharma Ltd received the board's approval to evaluate a potential acquisition of the carbapenem manufacturing facility in Gujarat’s Vadodara, which makes antibiotics primarily used for severe, multidrug-resistant bacterial infections.
This move could provide a significant cash infusion for Brooks.
Established in 2015, the Vadodara facility has become a critical asset in the global anti-infectives supply chain, with approvals from key regulatory bodies including the USFDA, EU GMP, and ANVISA.
Its strategic value was bolstered after the US Food and Drug Administration (FDA) approved its meropenem 2g injection on June 23. It makes Brooks Steriscience the first company to receive clearance for the higher-strength formulation of meropenem, an antibiotic used to treat serious bacterial infections in adults and children, in the US market.
The 2g strength provides a crucial dose option for treating serious infections. This regulatory milestone followed USFDA approvals for 0.5g and 1g meropenem injections in August 2022.
Earlier this month, Brooks secured shareholder approval to divest its investment in Brooks Steriscience, citing the "best interest of the company".
The potential buyer, OneSource Specialty, formerly Stelis Biopharma, announced in August that its board had given in-principle approval to evaluate the acquisition of Steriscience’s sterile injectable businesses, including the Vadodara facility.
Brooks Laboratories' rationale for the sale is rooted in its recent financial performance. While the company saw a 107 percent jump in profit before tax to Rs 3.23 crore in FY25, its liquidity remains stretched, with working capital utilization hovering around 90 percent.
The company also holds a guaranteed debt of Rs 65 crore on behalf of the joint venture. A successful divestment would strengthen Brooks' balance sheet, reduce its exposure to guaranteed debt, and free up capital to focus on its core business of critical care injectables and CDMO services.
Promoters Atul Ranchal and Rajesh Mahajan, who hold 19.24 percent and 17.36 percent, respectively, in Brooks, are industry veterans with over two decades of experience. Their focus has been on expanding Brooks’ footprint in critical care, CDMO, and semi-regulated export markets.
Both Ranchal and Mahajan couldn’t be reached for comments.
The Brook Laboratories shares had risen almost 30 percent since its JV secured approval for meropenem 2g in the US. On the morning of September 15, the stock was trading at Rs 160 on BSE, up 1.3 percent from the previous close.
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