India Pharma Outlook Team | Tuesday, 29 March 2022
Drug maker Aurobindo Pharma on Monday said it has acquired the domestic formulations business of Veritaz for Rs 171 crore on debt free and cash-free basis. This acquisition vehicle will greatly help Aurobindo as a launch pad for marketing biosimilar and other products in India, the company said in a statement.
This acquisition vehicle will significantly help Aurobindo as a launch pad for marketing biosimilar and other products in India, the company said in a statement. The transaction comes into effect from April 1, 2022 and is expected to by May 2022, the company said. Veritaz caters anti-infective and pain-management therapeutic areas and has a pipeline of products to enter into the
cardio-diabetic, ortho and gynecology segments “The addressable market of Veritaz’s current product portfolio is around Rs.26,775 crores which is an interesting space for Aurobindo to grow our industry,” Aurobindo said.
Veritaz has around 40 brands across the acute and critical care segments with a total number of 180 trademarks registered in its name. Its largest brands are Fepanil and Merogram. The acquired business has more than 900 people including 700 sales Reps covering more than 50000 retailers with nearly 1700 stockist, presence in 23 cities, reaching out to more than 70,000 doctors and empaneled with major hospitals.
Vertiaz was founded on September ’14, 2006 and so far promoters have invested more than Rs.80 crore to build up the distribution infrastructure and brands. “The acquisition of the business by the Firm is being done at an arm’s-length price to supplement the company’s plans to enter into the domestic formulations business,” Aurobindo said in a statement. “..with this acquisition; with this acquisition we strongly believe that with Aurobindo’s ability to built a product portfolio, and with the existing and increasing distribution network of Veritaz, we will be able to create a significant footprint in the domestic pharma market over the next few years,” said K. Nithyananda Reddy, managing director of Aurobindo.
