Hyderabad-based pharmaceutical company Laurus Labs has acquired Bangalore-based biotech company Richcore Lifesciences, to diversify into manufacturing of biotech drugs.
Laurus Labs has signed a definitive agreement to acquire 72.55 per cent of Richcore's shares from its private equity investors Eight Roads Ventures and VenturEast and other promoters for a value of Rs 246.7 crore.
Richcore has advanced R&D and manufacturing facilities, develops and manufactures biotech products critical for manufacturing biological drugs and offers support to develop and scale up bioprocesses by providing contract research, development, and manufacturing services (CDMO). Richcore is currently setting up its second manufacturing plant near Bengaluru and this is expected to be completed by March 31, 2021.
Laurus is focused on pharmaceutical active ingredients (API), formulations and synthesis. It is one of India's leading manufacturers of API for Anti-Retroviral (ARV), Oncology, Cardiovascular, Anti-Diabetics, Anti-Asthma and Gastroenterology medicines, besides pharmaceutical contract manufacturing services.
The current promoters of Richcore led by Subramani Ramachandrappa will continue as promoters of Richcore and will continue to manage operations. Following the successful closure of the transaction, Richcore will be renamed to Laurus Bio Pvt Ltd.
"We are very excited on this acquisition, as this gives us entry into high barrier biotechnology segment. Laurus Labs will bring scale to Richcore's operations and can become a major player in the biotech contract development and manufacturing (CDMO) space," says Dr Satyanarayana Chava, CEO of Laurus Labs. This will also help Laurus in becoming a leader in biocatalysis as Richcore brings significant expertise in enzyme development for pharmaceutical and other industrial applications," he said.
"Leveraging the synergies arising from Laurus's experience and Richcore's innovation, we plan to build scale as we continue to serve our existing customers and enter new biotech segments," said Subramani Ramchandrappa, Chairman & Managing Director, Richcore Lifesciences.