Aurobindo Pharma subsidiary acquires 80% stake in A1 Biochem for USD 17 Million
Aurobindo Pharma's subsidiary, Apitoria Pharma, will acquire an 80% stake in A1 Biochem Group's Contract Research Services business for USD 17 million. The acquisition aims to establish a CRDMO platform, enhancing Aurobindo's API business. A1 Biochem Group had a turnover of INR 1,024.42 million in FY2025-26. The deal is expected to close within 90-120 days.
The acquisition is significant for expanding the company's service offerings and market reach in the CRDMO space, which is a strategic growth area.
The acquisition is strategic and expected to enhance the company's business capabilities and market presence, leading to a positive outlook.
Apitoria Pharma Private Limited, a wholly owned subsidiary of Aurobindo Pharma Limited, has approved the acquisition of 80% ownership in the Contract Research Services business of A1 Biochem Group. The acquisition is based on an enterprise value of USD 17 million on a debt-free and cash-free basis. A1 Biochem Group is a Contract Research Organization (CRO) offering chemistry services to pharmaceutical companies, biotechs, and academic institutions, primarily in the USA. Its services encompass custom synthesis, medicinal chemistry, route scouting, analytical development, and rapid process scale-up.
The acquisition involves A1 Biochem Labs (India) Private Limited acquiring 100% ownership of A1 Biochem Labs LLC, USA, and the business of A1 Biochem Research (India) Private Limited. The existing promoter of A1 Biochem Group will retain the remaining 20% ownership in A1 Biochem Labs (India) Private Limited. The transaction aligns with Aurobindo Pharma's strategic objective to expand its presence in the Active Pharmaceutical Ingredients (API) business lifecycle, aiming to create a dedicated Contract Research, Development, and Manufacturing (CRDMO) platform.
This move is expected to expand the company's portfolio, enabling full-service, longer life cycle engagement with customers. It also grants access to an existing CRO platform with over 50 clients and more than 800 completed projects in the USA. A1 Biochem Group generated a turnover of INR 1,024.42 million in FY2025-26, with an EBITDA of INR 465.46 million. The group has scientific laboratories in Wilmington, North Carolina, USA, and Hyderabad, India, led by Dr. Rajendra Gadikota. The acquisition is subject to customary approvals and is expected to be completed within 90-120 days.
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Aurobindo Pharma Limited filed this with the NSE as a statutory disclosure, categorised under acquisition. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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