Aurobindo Pharma arm Apitoria to acquire 80% stake in A1 Biochem Group for $17 million

Pharma company Aurobindo Pharma Ltd on Thursday (July 23) said its wholly owned subsidiary Apitoria Pharma Private Limited has approved the acquisition of an 80% ownership stake in the Contract Research Organisation (CRO) business of A1 Biochem Group at an enterprise value of $17 million on a debt-free and cash-free basis.

Apitoria will invest $13.6 million to acquire the 80% ownership in A1 Biochem Group, subject to adjustments at the time of closing. The transaction will be completed through cash consideration and is expected to close within 90-120 days, subject to customary approvals and conditions under the definitive agreements.

A1 Biochem Group provides chemistry services to pharmaceutical companies, biotechnology firms and academic institutions. Its services include custom synthesis, medicinal chemistry, route scouting, analytical development and rapid process scale-up services.

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The A1 Biochem Group comprises A1 Biochem Labs (India) Private Limited, the CRO business of A1 Biochem Research (India) Private Limited, and A1 Biochem Labs LLC, USA.

Following completion of the transaction, Apitoria will hold 80% ownership in A1 Biochem Labs (India) Private Limited, while the existing promoter of A1 Biochem Group will retain the remaining 20% stake. A1 Biochem Labs (India) will acquire 100% ownership of A1 Biochem Labs LLC, USA and the CRO business of A1 Biochem Research (India).

A1 Biochem Group reported turnover of ₹1,024.42 million in FY2025-26, with earnings before interest, taxes, depreciation and amortisation (EBITDA) of ₹465.46 million.

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The group operates two scientific laboratories located in Wilmington, North Carolina, USA and Hyderabad, India. It has more than 50 fume hoods and over 90 scientists working in the target business. The group is led by Dr Rajendra Gadikota, who has more than 25 years of experience in the business and will continue with the group after the acquisition.

Aurobindo Pharma said the acquisition aligns with its objective of expanding its presence across the life cycle of Active Pharmaceutical Ingredients (API) business.

Apitoria is currently engaged in large-scale, regulatory-compliant API manufacturing. Through the acquisition of front-end research and development capabilities, the company aims to create a dedicated CRDMO platform and expand its portfolio with full-service customer engagement.

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The acquisition will provide access to an existing CRO platform with more than 50 clients and over 800 completed projects in the US, according to the company.

A1 Biochem Group operates in the pharmaceuticals industry and has a presence in the US and India. The group has also exported services to countries including the Netherlands, France and Japan.

The acquisition does not fall under related party transactions, and the promoter, promoter group and group companies of Aurobindo Pharma do not have any interest in the target entities or business.

Shares of Aurobindo Pharma Ltd ended at ₹1,526.60, down by ₹6.35, or 0.41%, on the BSE.

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