Granules buys Auctus Pharma in Rs 100 crore deal

HYDERABAD: Hyderabad-based mid-sized pharmaceutical firm Granules India has agreed to buy Auctus Pharma for about Rs 100 crore in an all-cash deal.

Auctus Pharma, which is also based in Hyderabad, will be Granules first-ever acquisition and operate as a separate division initially. VVS Murthy, chief financial officer of Granules, said the company will fund 20% of the deal amount through internal accruals and the rest through debt.

He said Granules will effectively save at least four-five years by acquiring Auctus Pharma, which possesses USFDA and WHO-GMP approved facilities.

Granules' managing director Krishna Prasad said the acquisition was a right fit and helped the company to diversify its product portfolio. Auctus Pharma, which reported Rs 120 crore of revenue last fiscal, has two manufacturing facilities-a US FDA approved active pharmaceutical ingredients facility at Visakhapatnam and an intermediates facility in Hyderabad. Its product portfolio includes 12 active pharmaceutical ingredients and key intermediates.