Hyderabad based Aurobindo Pharma acquires Veritaz Healthcare

Pharma major Aurobindo Pharmaceuticals said it has acquired the business and certain assets of Veritaz Healthcare Limited (VHL) for a cash consideration of Rs 171 crore.

The transaction will come into effect from April 1, 2022 and is expected to close by May 2022, the company said in a regulatory filing.

The acquisition will greatly help the company as a launch pad for marketing biosimilar and other products in India, it further stated.

Veritaz operates in pharmaceutical industry in India and sells branded generic formulations and other healthcare-related products. Anti-infective and pain management are the major portfolios contributing to the revenue of Veritaz.

Veritaz, which is a wholly-owned subsidiary of Trident Chemphar Limited, had a turnover of Rs 127 crore in FY21 at a CAGR of 3.4 per cent in previous three years. For FY22 (up to December 2021), Veritaz generated revenue of Rs 133.18 crore, a growth of 4.9 per cent. It has "more than 900 people including 700 sales reps and has stockiest more than 1,700 and other distribution-related infrastructure".

Commenting on the development, Aurobindo Pharma MD K Nithyananda Reddy said, "I am pleased to announce Aurobindo's entry into the domestic market with this acquisition...and with the existing and expanding distribution network of Veritaz, we will be able to create a significant foot print in the domestic pharma market over the next few years."

Shares of Aurobindo Pharma on Monday closed 1.61 per cent lower at Rs 706.85 apiece on the BSE.