Arch Pharma to buy Sibra

Arch Pharmalabs, one of the largest pharma players engaged in the manufacturing of intermediates and active ingredients (APIs) in the country, is close to acquiring 100 per cent equity in the Hyderabad-based Sibra Pharmaceuticals.

The deal, which is in the range of Rs 40 to 55 crore, is expected to be signed very shortly, said sources familiar with the development.

Sibra, a fully dedicated anti-retro virals (ARVs) manufacturing company promoted by an NRI investment group, had in June this year signed a co-marketing agreement with Arch Pharma.

Ajit A Kamat, chairman and managing director of Arch Pharma confirmed the move saying that the company was in discussions with Sibra promoters for a possible takeover. Sibra has its large ARV drugs manufacturing facility in Hyderabad.

If Sibra deal is closed, it will be Arch Pharma's fourth acquisition in the domestic pharma front after the recently concluded acquisition of Vitalife Laboratories, the pharma unit of the Apollo group for a consideration of Rs 40 crore in 2005 and other two acquisitions including the Rs 16 crore Merven Drug Products in 2000 and the Rs 8 crore Star Azzo deal in 2001.

The Rs 360 crore Arch Pharmalabs is supported by a number of marquee investors, including the SwissTec Venture Capital Fund of the Swiss Government and ICICI Venture.

In 2005, IL&FS Ventures had acquired a 15 per cent stake in Arch Pharmalabs for close to Rs 20 crore, enabling the company to conclude its third round of funding.