Alembic Pharmaceuticals said that it has acquired the balance 40% stake in Aleor Dermaceuticals from its JV partner Orbicular Pharmaceutical Technologies to strengthen its skin-related manufacturing and marketing footprint.
Aleor is a 60:40 joint venture between Alembic and Orbicular Pharmaceutical Technologies formed in April 2016 focusing on commercialising dermatology products globally.
Aleor has product offerings across cream, gel, ointment, shampoo, lotion, solutions, sprays, foams, microsponge and nanoparticulate platform-based 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 NCL T and other regulatory bodies, the merger of Aleor with Alembic.
The amalgamation will integrate business operations and provide impetus to the existing portfolio of Alembic. The acquisition augers well with the strategic planning and growth trajectory set by the company to capture higher market share in various segments of its pharmaceutical business.
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.
Pranav Amin, managing director of Alembic said, "We are happy to make Aleor our 100% 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.
Alembic Pharmaceuticals is a vertically integrated research and development pharmaceutical company. It manufactures and markets generic pharmaceutical products all over the world.
On a consolidated basis, the company reported a 39.7% fall in net profit to Rs 176.42 crore on a 3.2% fall in net sales to Rs 1,271.7 crore in Q3 FY22 over Q3 FY21.
The scrip rose 0.28% to currently trade at Rs 761.25 on the BSE.
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