| Gufic is in talks with two domestic pharma firms, with sterile manufacturing plants in tax-free Haridwar. A senior executive from Gufic Biosciences said that negotiations with one of the companies is in its final stages. |
| Sources in the company said the acquisition will be funded by internal accruals if it is within the estimated range. |
| "While the negotiations are primarily aimed at buying out the manufacturing plant, Gufic might make an offer for complete acquisition of the company, including its brands and businesses," the sources said. |
| A leading Mumbai-based merchant banker is advising Gufic on the proposed deal. Last year, Gufic had undertaken a major capacity expansion at its Navsari plant. |
| The sources said the promoters may also opt for a 4-5 per cent equity dilution in the company by way of private placement to fund the ongoing capex programme. |
| Gufic, a leading player in the pharmaceutical formulations and API segment, is also foraying into agricultural biotechnology. |
| The company, which has already entered the biotech segment with the launch of cardiovascular and infertility products, has a strong biotech R&D set-up. |
| "Agriculture biotechnology is complementary to our existing line of business as it would help the herbal consumer health products division control quality and availability of raw materials. The company is now trying to grow its own herbs and is also involved in tissue culture of certain fruits and vegetables," said Jayesh Choksi, CMD,Gufic Biosciences. |
| The company recently launched two novel products in the personnel hygiene and over-the-counter segments. It has also undertaken contract manufacturing projects for the country's top five pharma companies for certain herbal-based ethical products. |
| Gufic is also in talks with few multinational companies for licensing some of their best selling therapeutic products for the domestic market. |
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