Bangalore-based SeQuent Scientific Limited has entered into a definite agreement to acquire the manufacturing assets and business of Arvee Synthesis Private Ltd for an undisclosed amount, to build its human Active Pharmaceutical Ingredient (API) business, as per a stock market disclosure.
Mysore-based Arvee’s unit would be a site for key intermediates for SeQuent’s human API business, according to the agreement. The firm said this facility has all the necessary approvals and infrastructure with space for SeQuent’s future expansion.
“SeQuent’s strategy of focusing on small, niche molecules is paying dividends. The human API business of the company is poised to grow at a CAGR of over 50 per cent in the medium term, on the back of regulatory approvals of its key products in regulated market,” Manish Gupta, CEO of SeQuent said.
Arvee founded by Mohan Rao in 1988 focuses on bulk drug intermediates and specialty chemicals space. The company also does contract manufacturing, contract research and exports of drugs.
SeQuent, apart from this acquisition, also announced that it has picked up a 14 acre land parcel adjacent to its existing US FDA approved facility in Mangalore. The facility at Mysore and land at Mangalore would be used for meeting the demand of company’s key products in US and other regulated markets, the release added.
Earlier, SeQuent formed a joint venture with OrbiMed-backed Shasun Pharma to develop, manufacture and sell veterinary products. In this, SeQuent owns around 73 per cent stake while Shasun owns 27 per cent. Later, in April this year, SeQuent struck another deal to pick a minority stake in its JV partner Shasun Pharma for Rs 116.5 crore.
The announcement comes in the wake of another recent development where South-Korean company Songwon Industrial Group acquired the specialty chemical division of SeQuent for an undisclosed amount.