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Indian pharmaceutical company, Aurobindo Pharma, has received the nod to acquire 100% stake in Hyderabad-based Trident Life Sciences Ltd (TLSL) for a sum of  Rs 1.34 billion ($27.85 million).

In a statement to BSE, Aurobindo Pharma said that the decision in this regard was taken at the meeting held by the board of directors recently. It further added that the acquisition would enhance its capabilities in providing pharma manufacturing, distribution, services and solutions to its clients.

TLSL has an enterprise valuation of Rs 135 crore with a debt component of Rs 95 crore. The rest is equity. Motilal Oswal Investment Advisors and KPMG India have been appointed as independent advisors to carry out the valuation.

According to reports, Aurbindo will fund the deal through internal cash flows, while it will repay the debts in six to nine months.

The acquisition would provide Aurobindo Pharma an opportunity to enter the high growth injectables space as TLSL is building an injectable facility in Medak district in Hyderabad, which is scheduled to start operations in April 2011.

The facility will be acquired at its book value as on June 30, the statement said, adding that it will manufacture finished drug products such as glass vials for lyophilized sterile powder and liquids, ampoules, pre-filled syringes and blow-filled syringes.

The regulated markets of the U.S. and Europe contributed almost 60% of Aurobindo Pharma's finished drug sales in the quarter ended June 30.

In 2004, TLSL was incorporated as a Clinical Research Organisation (CRO), but later on the CRO business was created into a seperate entity.

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