Alembic Pharma acquires US-based firm Orit Labs; shares jump nearly 2%

Alembic Pharmaceuticals gained 1.58 per cent to Rs 512.05 at 10:25 IST on BSE after the company announced that through its subsidiary, it has completed the acquisition of USA based generic drug developer, Orit Laboratories LLC.

The announcement was made after market hours yesterday, 31 October 2017.

Meanwhile, the S&P BSE Sensex was up 354.84 points, or 1.07% to 33,567.97. The S&P BSE Mid-Cap index was up 136.84 points, or 0.82% to 16,724.82, underperforming the Sensex.

On the BSE, 1,249 shares were traded in the counter so far, compared with average daily volumes of 4,610 shares in the past one quarter. The stock had hit a high of Rs 512.85 and a low of Rs 506 so far during the day. The stock had hit a 52-week high of Rs 709.30 on 23 March 2017. The stock had hit a 52-week low of Rs 469.75 on 20 September 2017.

The mid-cap company has equity capital of Rs 37.70 crore. Face value per share is Rs 2.

Alembic Pharmaceuticals announced that through its wholly owned subsidiary, Alembic Pharmaceuticals Inc., it has completed the acquisition of West Caldwell, New Jersey, USA based generic drug developer, Orit Laboratories LLC along with real estate, owned by Okner Realty LLC.

With this acquisition, Alembic will now have a total of 69 abbreviated new drug application (ANDA) approvals (61 final and 8 tentative) from United States Food & Drug Administration (USFDA).

Financial details of the transaction was not disclosed.

Established in 2005 by Dr Satish Patel, Orit is focused on developing and filing oral solid and liquid products. With a state of the art 8,600 square feet R&D and pilot manufacturing facility, Orit has seven approved ANDAs and four ANDAs pending approval. Orit adds complementary skill sets in soft gelatin based oral solids and oral liquids to Alembic with a team of eight highly experienced scientists.

The acquisition increases Alembic's breadth and capabilities in the US with a competent R&D team bringing complementary skill sets in soft gelatin based oral solids and oral liquids. Acquisition brings Dr Satish Patel, an experienced leader from the US generic pharmaceuticals industry to the Alembic group.

The company will announce its Q2 results on 7 November 2017. On a consolidated basis, net profit of Alembic Pharmaceuticals declined 35.7% to Rs 66.67 crore on 12% decline in net sales to Rs 648.19 crore in Q1 June 2017 over Q1 June 2016.

Alembic Pharmaceuticals manufactures and markets generic pharmaceutical products.