BDR Pharmaceuticals eyes controlling stake in Acme Formulation

MUMBAI: BDR Pharmaceuticals, the Mumbai-based specialty drugmaker, is in talks to acquire contract development and manufacturing organisation (CDMO) Acme Formulation from private equity firm PAG, multiple people with direct knowledge of the matter said. The proposed transaction is expected to value Acme at $200-250 million, the sources said.

PAG acquired a controlling stake in Acme Formulation for $145 million (?1,054 crore) through its PAG Asia III buyout fund in 2021. Founder and managing director Viral Shah retained a significant minority stake after the transaction and continued as managing director and CEO. PAG owns about 62% of the company, while Shah holds around 31%, with the balance is owned by other investors.

BDR will acquire PAG's controlling stake, while Shah is expected to continue with the company as a minority shareholder, people familiar with the discussions said. Several private equity firms and strategic buyers, including Akums Drugs & Pharmaceuticals, had also evaluated the asset, the sources added.


Founded in 2005 and headquartered in Himachal Pradesh, Acme is among India's leading CDMOs, providing integrated R&D, product development and contract manufacturing services to leading domestic and multinational pharmaceutical companies. The group comprises Acme Formulation, Immacule Lifesciences, Acme Generics and Veritas Research, and has more than one million sq ft of manufacturing space with a workforce of over 2,500.

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It specialises in oral hormones, sterile injectables and complex formulations with manufacturing capabilities spanning tablets, capsules, vials, ophthalmic products and pre-filled syringes. Its facilities are approved by major global regulators including the US FDA, UK MHRA, EU GMP and Health Canada, while its growing US generics business has secured 38 approved ANDAs with another 18 under review.

The company exports to more than 40 countries and counts Abbott, GSK, Sandoz, Biocon, Merck, Alkem, Baxter, Torrent Pharmaceuticals, Cipla, Emcure, Mankind Pharma, Dr. Reddy's Laboratories, Lupin and Zydus among its customers.

Financially, Acme has delivered a sharp improvement in profitability despite softer sales over the past two years. According to Tracxn, revenue declined to $68.3 million in FY25 from $71.3 million in FY24, but Ebitda rose 26% to $14.6 million from $11.9 million, reflecting improved operating efficiencies and tighter cost management. Net profit jumped 35% year-on-year to $8.5 million from $6.4 million, while registering a five-year CAGR of 45%.

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A BDR Pharmaceuticals spokesperson declined to comment. Emails sent to PAG remained unanswered until press time.

The acquisition would strengthen BDR's fast-growing CDMO business, which focuses on oncology, critical care, women's healthcare and dermatology. The company is also known for developing and commercialising new and fourth-generation medicines across complex therapeutic segments. Speaking to ET last year, BDR Chairman and MD Dharmesh Shah said the company was exploring acquisitions of manufacturing facilities in the US with an investment of $100 million to expand its international footprint.