Aurobindo Pharma to Acquire 80% Stake in A1 Biochem Group for USD 17 Million, Strengthening CRDMO Business
Aurobindo Pharma Limited has announced a strategic acquisition aimed at expanding its presence beyond Active Pharmaceutical Ingredients (API) manufacturing and into the rapidly growing Contract Research, Development and Manufacturing Organization (CRDMO) space. The company’s wholly-owned subsidiary, Apitoria Pharma Private Limited, has approved the acquisition of an 80% ownership stake in the Contract Research Organization (CRO) business of A1 Biochem Group for an enterprise value of USD 17 million (approximately ₹142 crore) on a debt-free and cash-free basis.
Strategic Acquisition to Build an Integrated CRDMO Platform
The acquisition is part of Aurobindo Pharma’s long-term strategy to strengthen its presence across the pharmaceutical value chain. While Apitoria Pharma is already engaged in large-scale, regulatory-compliant API manufacturing, the addition of A1 Biochem’s research capabilities will enable the company to establish an integrated Contract Research, Development and Manufacturing Organization (CRDMO) platform.
By combining front-end research with large-scale manufacturing, Aurobindo Pharma aims to provide end-to-end solutions for pharmaceutical and biotechnology companies, creating longer-term customer relationships and expanding its service portfolio.
Transaction Structure
Under the proposed transaction:
- Apitoria Pharma Private Limited will acquire an 80% stake in A1 Biochem Labs (India) Private Limited.
- The existing promoter of A1 Biochem Group will retain the remaining 20% ownership, ensuring leadership continuity.
- A1 Biochem Labs (India) will acquire 100% ownership of A1 Biochem Labs LLC, USA.
- It will also acquire the CRO business of A1 Biochem Research (India) Private Limited through a Business Transfer Agreement.
The company expects the transaction to be completed within 90 to 120 days, subject to customary regulatory approvals and the fulfillment of conditions under the definitive agreements.
About A1 Biochem Group
A1 Biochem Group is an established Contract Research Organization (CRO) providing specialized chemistry services to pharmaceutical companies, biotechnology firms, and academic institutions, primarily in the United States.
Its service offerings include:
- Custom synthesis
- Medicinal chemistry
- Route scouting
- Analytical development
- Rapid process scale-up
The group operates modern scientific laboratories in Wilmington, North Carolina (USA) and Hyderabad (India), providing research support to clients across multiple global markets.
Strong Financial Performance
The acquisition target has demonstrated solid financial performance over the past few years.
Financial Highlights
- Enterprise Value: USD 17 million
- Investment by Apitoria: USD 13.6 million for an 80% stake (subject to closing adjustments)
- FY2025-26 Revenue: ₹1,024.42 million
- FY2025-26 EBITDA: ₹465.46 million
Revenue Trend
- FY2023-24: ₹608.9 million
- FY2024-25: ₹1,062.2 million
- FY2025-26: ₹1,024.4 million
The business has maintained healthy profitability while serving a diversified international customer base.
Global Infrastructure and Experienced Leadership
A1 Biochem Group operates two advanced research facilities equipped with:
- More than 50 fume hoods
- A team of over 90 scientists
The business is led by Dr. Rajendra Gadikota, who has over 25 years of industry experience. He will continue to lead the organization after the acquisition, ensuring operational continuity and sustained customer relationships.
Expanding International Reach
In addition to serving customers across the United States, A1 Biochem Group exports its research services to several international markets, including:
- Netherlands
- France
- Japan
- Other global pharmaceutical markets
This international footprint will further strengthen Aurobindo Pharma’s global research and development capabilities.
Why This Acquisition Matters
The acquisition provides Aurobindo Pharma with immediate access to:
- An established CRO platform with over 50 global customers
- More than 800 completed research projects in the United States
- A highly experienced scientific workforce
- Advanced chemistry research capabilities
- Strong relationships with biotech and pharmaceutical companies
The transaction complements the company’s existing API manufacturing operations and positions Aurobindo Pharma to offer comprehensive research, development, and manufacturing services under a single integrated platform.