Aurobindo Pharma’s wholly owned subsidiary, Auro Pharma, has acquired the non-oncology prescription formulations business of Khandelwal Labs for Rs 325 crore. The transaction has been signed and closed on January 1, and is effective from the same date. The deal does not require any government or regulatory approvals.
The stock responded to the news positively in Friday’s trade, up over 1.5% intra-day. The company had announced the acquisition after trading hours on January 1
Rs 325 crore cash deal structure
Auro Pharma will acquire the business for a cash consideration of Rs 325 crore, subject to working capital adjustments as outlined in the definitive agreements. The acquisition will be via the slump sale route.
The release noted that no equity shares or control of Khandelwal Laboratories will be acquired, as only the non-oncology formulations business is being transferred.
Expansion in domestic market
Aurobindo Pharma said the acquisition will help expand its domestic footprint and strengthen its presence in pain management and anti-infective segments. “The acquisition of the aforesaid Business shall add further brands in pain management and anti-infective which shall complement the existing product portfolios of the Company and help in expanding its business in domestic market.” It noted.
What the acquired business includes?
The non-oncology prescription formulations business of Khandelwal Labs, that Aurobindo Pharma acquired, includes 23 brands marketed across 67 SKUs, along with nine pipeline products. The portfolio is largely focused on anti-infective and pain management therapies, which the company said will complement its existing domestic offerings.
The business also comes with inventory, intellectual property, employees, contracts, and a well-established distribution network.
Financial performance of non-oncology business of Khandelwal
In FY25, the non-oncology business of Khandelwal recorded a turnover of Rs 113.53 crore and an EBITDA of Rs 28.99 crore.
Over the last three financial years, revenues stood at Rs 104.98 crore in FY2022–23, Rs 114.69 crore in FY24, and Rs 113.53 crore in FY25.
Aurobindo Pharma Q2FY26
Aurobindo Pharma in its Q2FY26 posted a 4% increase in its consolidated net profit to Rs 848 crore. Its revenue from operations rose to Rs 8,286 crore.