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Vadodara based Alembic Pharmaceuticals has acquired the balance 40 per cent stake in Aleor Dermaceuticals from its joint venture partner Orbicular Pharma for an undisclosed sum. The move is aimed at strengthening its skin-related manufacturing and marketing footprint.
Alembic stock was down 0.1 percent today on BSE.
Aleor has product offerings across cream, gel, ointment, shampoo, lotion, solutions, sprays, foams, Microsponge and Nanoparticulate platform-based products.
The acquisition will help Alembic to secure higher market share in various segments where Aleor operates. Alembic thinks dermatology is a promising area and having 100 percent control over Aleor’s operations will enable it to explore new opportunities. Aleor has a USFDA approved manufacturing site, 15 products under development and another 30 products which have already been approved.
Pranav Amin, Managing Director of Alembic said, “We are happy to make Aleor our 100 percent subsidiary and thereafter, post-merger, a unit of Alembic. This will further bolster our global reach with cutting-edge research and development in the derma space and enhance our integrated dermatology platform with a comprehensive collection of scientifically-proven products for daily skincare regimens and peri-procedural use.”
According to IQVIA prognosis report, the dermatology market is forecasted to grow in double digits and increase its market share within the pharma market. The acquisition will unlock the full potential of Aleor and drive significant value creation through synergies with Alembic.
The combined entity will have a bigger portfolio of products and direct access to markets, which will strengthen overall capabilities to serve more efficiently across different therapies, both overseas as well as domestic. “Further the growth of business envisages adequate capital and resources commitments and hence, the merger shall enable the pooling of abundant resources and impetus to the growth at a consolidated level,” Alembic said.
Orbicular Managing Director MS Mohan said that the company would now focus on its development capabilities and work on ‘advancing several interesting and exciting opportunities in complex products’.
“The Board of Directors of Aleor has been reconstituted with Orbicular nominees resigning from the Board. The Board of Directors of Alembic has also approved, subject to approval from NCLT and other regulatory bodies, the merger of Aleor with Alembic,” Alembic said in a statement here.
