Public listed Vivimed Labs has acquired Hyderabad-based Finoso Pharma Pvt Ltd in a cash cum stock deal worth Rs 15 crore ($2.8 million). The transaction involves Rs 10 crore payable in cash include few tranches in milestone payments besides stock worth Rs 5 crore.
Finoso is a pharmaceutical development services company, founded by R K Kumar, who was earlier working in Michigan based healthcare supplier Perrigo. The business services of the company include formulation development, regulatory services, analytical development and quality systems for product development of generics, innovators and licensing of dossiers.
Finoso is located in Alexandria Techno Park in Hyderabad and will become a R&D unit of Vivimed to support its innovators, generics and licensing efforts. In FY12, the company recorded revenues of Rs 5.2 crore and EBITDA of Rs 1.6 crore.
Vivimed Labs had raised Rs 127 crore from PE funds NYLIM Jacob Ballas India Fund and Kitara Capital in late 2011. The company has made two acquisitions previously including majority stakes in Octtantis Nobel Labs Pvt Ltd and bulk drug and intermediates firm Uquifa.
The company’s scrip last traded at Rs 317.7, down 3.23 per cent on the on BSE in a weak Mumbai market on Thursday.
(Edited by Prem Udayabhanu)