Orchid Chemicals & Pharmaceuticals Ltd, a Chennai-based pharmaceutical company, is acquiring Karalex Pharma LLC, a US-based front-end generic marketing and sales services firm, for an undisclosed sum.
The deal, which will be closed by the month-end, is an all cash transaction.
The acquisition will help Orchid sell its products directly in the US market. “The acquisition will provide a strong US-based sales capability to Orchid, paving the way for synergistic returns from our upcoming and long term strategic generic pharmaceuticals pipeline. The move also endows Orchid, for the first time, an end-to-end coverage capability of the entire generic pharmaceutical business cycle,” K Raghavendra Rao, Managing Director, Orchid Chemicals, said, in the statement.
Orchid develops and manufactures products in actives, formulations and nutraceuticals segment. It has manufacturing facilities in Chennai and Aurangabad in India, and also in the US and UK, and exports its products across 75 countries globally. It also has two subsidiaries called Orchid Research Laboratories Ltd in Chennai and Bexel Pharmaceuticals Inc in the US, which are engaged in developing new chemical entities for therapeutic use.
The stocks of the company were traded at Rs 151, up by Rs 6.65 or 4.61% at the close of Bombay Stock Exchange today. The net revenue and net profit of the company in FY10 were Rs 120 thousands and Rs 54 thousands, respectively.