Mumbai-based Ipca Laboratories Ltd has acquired an 80% stake US drug marketing company Bayshore Pharmaceuticals LLC for $10.23 million (Rs 75 crore) in cash.
The acquisition will enable Ipca to commercialise its registered generics drugs in the US, the company said in a stock-exchange filing. The deal was completed on 2 October, it added.
This is the second acquisition by Ipca Labs this year. In January, it had bought American pharmaceutical company Pisgah Labs for $9.65 million.
Ipca acquired the stake in the New Jersey-based limited liability company through wholly owned unit Ipca Pharmaceuticals Inc.
Bayshore reported total income of $7.05 million and earnings before interest, tax, depreciation and amortisation of $0.56 million for its financial year ended December 2017. That compares with total income of $3.01 million and an EBITDA loss of $0.57 million the previous year.
Bayshore was founded in 2011. It sells and markets its own registered generics drugs as well as those of other pharmaceutical companies.
Founded six decades ago, Ipca Labs manufactures branded and generic formulations, and bulk drugs. It has previously made several similarly-sized acquisitions, including in the US.
In 2015, the company had acquired a 19% stake in Hyderabad-headquartered Krebs Biochemicals & Industries Ltd. The year before, the company had acquired a manufacturing plant in Indore from Alpa Labs for Rs 71.71 crore ($12 million at the time).
Ipca's investors include private equity firm ChrysCapital and multi-stage investor SAIF Partners.
ChrysCapital held a 3.95% stake in the drugmaker at the end of June while SAIF Partners owned about 1.6%, stock-exchange data show.