- 24 Feb 2025
- ICICIdirect Research
GRANULES HAS ACQUIRED A 100% EQUITY STAKE FOR ~₹192.5 CRORE (1.02X SALES) IN SENN CHEMICALS
GRANULES - 487 Change: 16.05 (3.41 %)News: Granules has acquired a 100% equity stake for ~₹192.5 crore (1.02x sales) in Senn Chemicals, AG a Swiss Corporation that specializes in custom peptide development and manufacturing. It has an expertise in Liquid-Phase peptide synthesis and Solid-phase peptide synthesis and offers development and manufacturing services for peptides, peptide fragments, and amino acid derivatives.
View: The proposed acquisition would be Granules' maiden foray into CDMO space. The target company has a specialisation in peptides technology, an essential requirement for entering GLP-1 space. The entire setup is in Switzerland which is also an advantage for localised manufacturing. At 1x sales the acquisition seems cheap. It is also likely to add a different revenue stream for the company. That said, the target company’s falling revenues over the years besides a relatively uncharted territory for Granules are some of the issues to watch out for.
Impact: Neutral