Generic injectables-focused Gland Pharma Ltd, majority owned by China’s Shanghai Fosun Pharmaceutical Group, said it has acquired the assets of Hyderabad-based biopharma company Vitane Biologics.
Gland Pharma has purchased the facility and equipment among others for around Rs 90 crore ($12.3 million), a spokesperson said at an earnings call.
The acquisition will help Gland Pharma to boost the production of Russian Covid-19 vaccine Sputnik V in India.
In March, it had entered into an agreement with Russia's sovereign wealth fund Russian Direct Investment Fund to manufacture up to 252 million doses of the Sputnik V Covid-19 vaccine
The next month, India approved the use of Sputnik V Covid-19 vaccine as corona cases spiked in the country. The vaccine, which has been approved for use in more than 50 countries, has proven 91.6% effective against the virus.
Srinivas Sadu, managing director and chief executive of Gland Pharma, said that the firm’s new vaccine business is expected to accelerate its long-term strategy of entering into biosimilar space.
Gland Pharma's revenue from operations grew 32% to Rs 3,463 crore for the fiscal ended March 2021. Net profit increased 29% to Rs 997 crore.
"New product launches and volume growth in our existing portfolio, along with geographic expansion, have led to strong business growth across all markets," said Sadu.
Gland Pharma was incorporated in 1978. It mainly made liquid parenterals before expanding into other areas of the injectable value chain including contract development, technology transfer and manufacturing across a range of drug delivery systems.
As of March 2020, it primarily sold products under business-to-business models with clients based in 60 countries.
The company floated its initial public offering (IPO) last year.