Aurobindo Pharma's wholly-owned subsidiary, Auro Pharma Limited, has acquired the branded non-oncology prescription formulations business of Khandelwal Laboratories for a cash consideration of ₹325 crore. This strategic move strengthens Aurobindo's domestic formulations portfolio, targeting key non-cancer therapeutic areas amid India's booming pharma market.
The acquisition, intimated under Regulation 30 (LODR) to stock exchanges, involves a debt-free, cash-free transfer of Khandelwal's established branded portfolio. Valued at ₹3.25 billion, the deal was announced on December 31, 2025, positioning Aurobindo to expand its foothold in India's competitive formulations segment.
Key Highlights
Target Business: Branded non-oncology prescription formulations from Khandelwal Laboratories Private Limited, focusing on high-demand therapeutic categories.
Acquirer: Auro Pharma Limited, 100% subsidiary of Aurobindo Pharma Ltd.
Consideration: Lump-sum cash payment of ₹325 crore, enhancing Aurobindo's domestic revenue streams.
Strategic Fit: Builds on prior domestic entries like Veritaz Healthcare, accelerating growth in non-oncology segments.
Market Implications
This bolt on acquisition signals Aurobindo's aggressive push into branded generics, leveraging Khandelwal's established brands for quicker market penetration and synergies in distribution. Shares may see positive momentum as investors eye expanded India ops amid global generics pressures.
Sources: BSE India via Rediff Money, Business Upturn