Aptuit to acquire majority stake in Laurus labs

US-based contract drug development firm Aptuit Inc is acquiring a majority stake in Hyderabad-based Laurus Labs Limited by investing more than $100 million (above Rs 400 crore) over the next four years.

Following this agreement, the two companies announced the formation a new entity called Aptuit Laurus.

"Aptuit expects to achieve a majority control of Aptuit Laurus by March 2009 as part of its ongoing funding," company's chief executive officer, Michael A Griffith, said.

He, however, termed that "the deal is not an acquisition but a merger" between Laurus Labs and Aptuit's Bangalore centre of excellence for software design and development and manufacture of Clinicopia, a clinical packaging and supply management product suite.

Stating that the new entity would initially provide services to clients in early-stage drug discovery and a host of other related activity, Griffith said Aptuit Laurus would be headed by Laurus Labs founder and chief executive officer Satyanarayana Chava.

Laurus Labs, a start-up company, is a knowledge resource and solutions provider with a research and development centre near Hyderabad and a manufacturing plant in Visakhapatnam, which is currently under construction.

According to Griffith, investments over the next four years will be used to build upon Aptuit Laurus development, manufacturing and informatics capabilities with the addition of a complete suite development services including medicinal chemistry, consulting and large-scale dosage form manufacturing.

Thereafter, Aptuit Laurus will mirror the full suite of services offered by Aptuit in the US and Europe.

Aptuit intends to combine its global offerings in drug development with Laurus research and development and manufacturing expertise and its newly built facilities to provide pharmaceutical companies integrated services, technologies and manufacturing capabilities that span the entire drug development lifecycle.

He said that a comprehensive business plan had been chalked out and the new entity was expected to post revenues of $10 million in the first year of its operations. The number of employees would also be increased from the existing 300 to 800 by 2008.

"Our strengths are complementary and we are very focused on the value and efficiencies to be gained for our customers in having access to a full range of research, development and manufacturing capabilities and services on a truly global scale," the Laurus Labs founder said.