Laurus Labs acquires majority stake in Richcore Lifesciences; stock gains nearly 5 per cent

On Thursday, Laurus Labs Limited opened 4.83 per cent higher after it announced on Wednesday after the market hours that it had signed a definitive agreement to acquire a majority stake in a Bengaluru-based fast-growing biotech company, Richcore Lifesciences Private Limited.

The acquisition aims to provide the company access to its high growth areas, globally and in India, by entering into the broader biologics and biotechnology segments. The agreement would help Laurus Labs in adding a fourth revenue stream to its existing revenue stream of active pharmaceutical ingredient (API), formulations, and synthesis.

Laurus Labs will acquire 72.55 per cent of Richcore’s shares from Eight Roads Ventures and VenturEast worth Rs 246.7 crore from its internal accruals. Moreover, the acquisition will also help in the growth of revenue and profit after tax of the company.

Laurus Labs is one of the leading manufacturers of API for anti-retroviral (ARV), oncology, cardiovascular, anti-diabetics, anti-asthma, and gastroenterology. Out of the three revenue segments, generic API contributes approximately 57 per cent, generics finished dosage form (FDF) contributes 29 per cent and synthesis contributes 14 per cent.

At around 11.24 am today, its share was trading 2.42 per cent higher at Rs 291.95. It recorded an intraday high of Rs 298.80 and an intraday low of Rs 289.30 on BSE.