Transaction:
- Alkem Laboratories Ltd has announced the acquisition of 100% stake in Adroit Biomed Ltd., a pharmaceutical company focused on the skincare segment, for around ₹140 crore.
- Separately, Alkem’s subsidiary, Alkem MedTech, has signed a binding offer to acquire 100% stake in Bombay Ortho Industries Pvt Ltd, a manufacturer of orthopaedic implants, for around ₹147 crore.
About Adroit Biomed:
- Adroit has a differentiated dermatology portfolio with key brands being Glutone, SkinFay, Racine and FortiSil.
- Adroit Biomed’s revenue grew from Rs 48.14 Crores in FY23 to Rs 53.55 crore in FY24.
About Bombay Ortho Industries:
- Established in 2021, Bombay Ortho specializes in hip and knee implants, a key segment in India’s growing medical device industry.
- Bombay Ortho Industries revenue grew from Rs 30 Lakhs in FY23 to Rs 5.5 Crores in FY24.
About Alkem Laboratories Ltd:
- Incorporated in 1973, Alkem is engaged in the development, manufacturing, and marketing of pharmaceuticals with operational footprints across 50+ countries.
- The company offers a wide range of products spanning across multiple therapeutic areas, such as anti-infective, gastroenterology, pain relief and analgesic, anti-diabetic, cardiology, oncology, dermatology, osteoporosis, gynecology, neurology, CNS, and vitamins, minerals and nutrients.
- Alkem has 20 manufacturing facilities (18 in India and 2 in the US) and 5 R&D centers.
Rationale:
- The Adroit Biomed acquisition will be paid in two tranches, subject to adjustment on account of debt & debt like items and change in normalized working capital as on closing date and other appropriate closing adjustments, with the deal set to be completed by 1 April” Alkem said in a statement accompanying its December quarter (Q3FY25) earnings.
- The Bombay Ortho Industries acquisition will be payable in four tranches, with the deal set to be completed by 30 June.
- The acquisition of Adroit will enable Alkem to diversify its portfolio, enhance market penetration and strengthen presence in the growing segments of dermatology and cosmetology. Also, the investment in Bombay Ortho is in line with Alkem’s strategy for Medtech in India.
- Bombay Ortho is a strategic investment which will help to gain manufacturing capabilities to participate in growing orthopedic space and leveraging Bombay Ortho’s expertise within the hip and knee implants segment.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
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