Aurobindo Pharma, an Indian multinational pharmaceutical manufacturing company, has recently announced the acquisition of a 51% stake in GLS Pharma, a pharmaceutical company dealing in oncology products.
The acquisition is done for cash consideration of $3.65 million. The process of share transfer is estimated before July 31, 2022.
Aurobindo Pharma stated that the investment is done to expand the portfolio of the company in oncology products and business in the native market and increase its overall revenues in the oncology business.
The transaction is stated to be processed at a prior money valuation of $5.8 million. The acquisition is processed through the combined issuance of 2,04,819 primary equity shares for $1.197 million which will be issued by GLS Pharma.
The purchase of 4,09,339 secondary equity shares will take place for $2.3 million crore from the existing shareholders of GLS Pharma.
The company further stated that it also has a call option in which it can acquire the remaining 49% equity of GLS Pharma, after a duration of three years but before five years from the recent acquisition, at fair value estimated at such point in time.
GLS Pharma has a country-centric approach and has a pan-India availability in about 400 institutions. The company deals in about 65 generic Oncology molecules and covers all major corporate, Central, and State Government institutions with approximately 10,000 Oncologists experts and physicians on their calling list.
The company recorded total revenue of $3.3 million during the financial year ended 31st March 2022, $3.38 million in FY 2021 ending on 31st March and marked $3.02 million during the financial year ended 31st March 2020.
Aurobindo Pharma manufactures, develops, and distributes generic pharmaceuticals, active pharmaceuticals, and branded specialty pharmaceuticals ingredients. Its net profit declined 28.1 percent to $73.83 million on a 3.3 percent downfall in total sales to $7,742.33 million in quarter four, FY22 over quarter-four FY21.