Ipca Laboratories has fully acquired American pharmaceutical company Pisgah Labs for $9.65 million, the Mumbai-headquartered drugmaker said in a stock exchange filing on Tuesday.
The acquisition was made via Ipca Labs' US subsidiaries, Ipca Pharmaceutical Inc and Onyx Scientific Ltd.
In a statement, Ipca Labs said the acquisition would help it establish a foothold in the US market in the fields of contract research, intermediates manufacturing and small-volume active pharmaceutical ingredients (API).
“Pisgah Labs has been a chemistry solutions provider for over three decades and will continue to operate out of its North Carolina manufacturing facility under the Pisgah trade name,” Ipca Labs said in a statement.
Pisgah, which was founded in 1981, had a total income of $2.89 million and earnings before interest, taxation, depreciation and amortisation (EBITDA) of $1.14 million in the previous financial year.
Ipca Labs has previously made several similarly-sized acquisitions, including in the US.
In 2015, the company had acquired 19% stake in Hyderabad-headquartered Krebs Biochemicals & Industries Ltd.
Founded more than six decades ago, Ipca Labs manufactures APIs and finished dosage forms. It has a significant presence in domestic branded formulations, global branded and generic formulations, and global APIs.
Ipca's investors include India-focused private equity firm Chrys Capital and Malaysian sovereign wealth fund Khazanah.
The company reported revenues of Rs 3,156 crore for the financial year 2016-17. Close to 40% of its revenue comes from exports.
Ipca's share price stood at Rs 584.60 at the close of trade on Wednesday, up 1.9% from its previous close. The BSE Sensex rose 0.89% on Wednesday as it hit the 35,000 mark for the first time.