- 20 Jun 2022
- ICICIdirect Research
Aurobindo Pharma acquires GLS Pharma
AUROPHARMA - 1569 Change: 6.25 (0.40 %)News: The Board of Directors of Aurobindo Pharma has approved the acquisition of 51% equity shares in GLS Pharma (pre-money equity valuation of Rs. 45.65 crore) for a total consideration of Rs. 28.05 crore. GLS pharma operates in oncology business with a manufacturing facility in Hyderabad. GLS had a total sales of Rs. 25.8 crore in FY22, Rs. 26.4 crore in FY21 and Rs. 23.6 crore in FY20. Aurobindo Pharma also has a call option to acquire the balance 49% equity shares of GLS, after three years but before five years from the current acquisition, at a fair value determined at such a point in time
Views: Aurobindo’s acquisition is primarily to expand the foothold in oncology business in the domestic market as well as to add inorganic capacity and revenues in oncology business. This is largely in continuation with Aurobindo’s foray into domestic formulations post acquisition of Veritaz in March, 2022 and provides exposure to remunerative oncology portfolio in domestic market
Impact: Positive