Aurobindo to invest in Tirupati-based drugmaker Synergy Remedies
Photo Credit: Reuters

Aurobindo Pharma Ltd has agreed to invest Rs 15 crore (around $2.1 million at current exchange rates) in exchange for a 19.9% stake in pharmaceutical company Synergy Remedies Pvt. Ltd, the drugmaker said in a stock-exchange disclosure.

The transaction will offer Aurobindo access to supplies of active pharmaceutical ingredients (APIs) and intermediates from Synergy, which the latter manufactures, the disclosure stated.

The transaction is expected to be completed by the end of this month.

Incorporated in 2011, Synergy started commercial production in the financial year 2016-17 and owns a manufacturing plant at Tirupati in Andhra Pradesh. It has licences for ten API products.

Synergy’s turnover stood at Rs 15.5 crore in the year through March 2018, up from Rs 66.35 lakh in the previous year.

Aurobindo has struck some big deals in the recent past.

Last month, it had agreed to buy seven branded oncology injectables from US-based Spectrum Pharmaceuticals Inc. for up to $300 million (Rs 2,134 crore).

In November 2018, it had agreed to acquire a product under development and related assets from Australia-based Advent Pharmaceuticals Pty. Ltd for $12.5 million (Rs 91 crore) in cash.

In September 2018, it had agreed to purchase the US dermatology and generic pills business of Sandoz Inc., a unit of Novartis AG, for as much as $1 billion in the biggest overseas acquisition by an Indian drugmaker.

Aurobindo’s consolidated revenue from operations stood at Rs 16,499.84 crore for the year through March 2018, up from Rs 15,089.86 crore the year before.

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