Optimus- Unichem Merger

The domestic Pharmaceutical leader “Unichem Laboratories” disclosed that the company has acquired 19.99% shares of the each in 2 API (active pharmaceutical ingredient) manufacturing unit of Optimus pharmaceutical.

The optimus pharma is a Hyderabad-based pharmaceutical group which has total revenue of Rs 120 crore ($16.5 million).

As part of the transaction, the firm bought stake in Optimus Drugs Pvt. Ltd for Rs 72.08 crore and acquired holding in Optrix Laboratories Pvt. Ltd for Rs 47.92 crore, Unichem said in a stock market disclosure.

The acquisition will give Unichem access to the active pharmaceutical ingredient (API) facilities of the two companies in Hyderabad and Visakhapatnam. The deal will also provide the acquirer with additional capacity to fulfil its export orders.

Optimus, founded by D Srinivas Reddy in 2004, had a total income of Rs 198.86 crore for the financial year ended March 2018, said the stock market disclosure. Optrix, which was set up in March 2012, reported a total income of Rs 173.38 crore for the financial year ended March 2018, said the disclosure.

Both the companies, owned and controlled by the same management, are engaged in researching, developing, manufacturing, marketing, and distribution of APIs and intermediates.

Trans-Continental Capital Advisors Pvt. Ltd and Genesis Management Consultancy Services Pvt. Ltd acted as financial advisers to the transaction.

Unichem

The company, founded in 1944 by the late Amrut Mody, is known for its speciality pharmaceuticals business. The drug maker has more than 500 regulatory filings for APIs.

In its latest annual report, Unichem said that it intends to ramp up its capabilities and capacities in APIs and intermediates manufacturing to serve its fast-growing US formulations business.

“The opportunities in the API space are growing, with branded drug sales coming off patent and an increasing number of successful patent challenges made by generic companies,” it added.

Unichem reported total revenue of Rs 879.4 crore for the financial year ended March 2018, up from Rs 704.17 crore a year earlier, going by the company's filings to a stock exchange.

Unichem Laboratories has entered into an agreement to acquire 20 per cent stake in the Active Pharmaceutical Ingredient (API) and intermediate business of Hyderabad-based Optimus group. The financial terms of the deal were not disclosed.

The transaction will give Unichem access to Optimus’ US Food and Drug Administration approved API manufacturing facilities, while Optimus will benefit from the knowledge base and industry best practices of Unichem, Unichem Laboratories said in a statement.

Trans-Continental Capital Advisors and Genesis Management Consultancy Services were the financial advisers to the transaction.

Pharma firm, Unichem Laboratories announced that the company has entered into an agreement to acquire 20 percent equity stake in the API and intermediate business of Hyderabad based Optimus group.

The acquisition value is Rs 120 crore, a company statement said.

The transaction will give Unichem access to Optimus' US FDA approved API manufacturing facilities, and at the same time, Optimus will gain from the extensive knowledge base and industry best practices of Unichem, making the deal a win-win for both Unichem and Optimus, the release said.

Unichem engaged in speciality pharmaceutical business manufactures and markets a large basket of generic pharmaceutical formulations in several regulated markets across the world. The company has deep expertise in research, product development, process chemistry and manufacturing of complex API as well as dosage forms.

The Optimus group operates as manufacturer of formulations, API's and intermediates for Indian and other regulated/RoW markets. Presently, the group's API vertical has its manufacturing facilities located in Hyderabad and Vishakhapatnam, having specialisation in novel/polymorph chemistry and process engineering.