Vivimed Labs to acquire Finoso Pharma

The deal to cost around Rs 15 crore of cash, stock, deffered payment, to be debt free

Hyderabad-based Vivimed Labs Limited today said that it has proposed to acquire city-based Finoso Pharma Private Limited, a pharmaceutical development services company focused on formulations product development efforts for multiple markets and develops globally accepted dossiers.

The proposed acquisition will be done for a total consideration of Rs 15 crore comprising cash, stock and deferred payment, and will be debt free, according to a company press release.

With a state-of-the-art facility in Alexandria Techno Park in Hyderabd, Finoso had recorded a revenue and EBITDA of Rs 5.2 crore and Rs 1.6 crore respectively in the last financial year.

After acquisition, Finoso will become Vivimed’s research and development (R&D) unit to support innovators, generics and licensing efforts. RK Kumar, founder of Finoso, will enter into appropriate management contracts and employment agreements on completion of the transaction, the release said.

The company's scrip is currently trading at Rs 317.35 on BSE, down 3.34 per cent over the previous close of Rs 328.30.