Genpharmasec acquires stake in Derren Healthcare, shares down

Arushi Mishra Updated - September 20, 2023 at 08:18 PM.

This acquisition is anticipated to create substantial value by capitalising on combined capabilities and unlocking synergies

Genpharmasec Limited has finalised a Share Purchase Agreement and Share Subscription Cum Shareholder’s Agreement with Derren Healthcare Private Limited and its shareholders, securing a 70 per cent stake in the company over a one-year period. The move is aligned with Genpharmasec’s long-term strategic goals, aimed at establishing a distinct presence in the pharmaceutical sector. This acquisition is anticipated to create substantial value by capitalising on combined capabilities and unlocking synergies.

Derren Healthcare Private Limited is a research-oriented company specialising in the development of high-quality pharmaceutical products, encompassing generics and innovative finished formulations. DHPL’s Contract Research Organization and CDMO offer diverse research services for Pharmaceutical and Generic Drug Industries, serving both Indian and International companies.

The transaction encompasses a 70 per cent stake in DHPL, including its manufacturing plant, along with associated land and buildings located in Ahmedabad, Gujarat. DHPL boasts a diverse portfolio of over 100 approved products and a robust R&D product pipeline comprising an additional 20 products. The company holds approvals from the Gujarat FDA and WHO GMP certification, with ongoing efforts to secure approvals from regulators in various international markets.

DHPL’s manufacturing facility spans approximately 40,000 sq. ft., with a production area of 7,000 sq. ft. and a dedicated QA/QC area of 300 sq. ft. It has the capability to manufacture batches ranging from small to large sizes, with an installed capacity of 8,64,00,000 vials per annum and 8,64,00,000 ampules per annum. Additionally, DHPL has plans for future expansion into Pre-Filled Syringes.

However, shares were down by 4.37 per cent to ₹4.16 at 2.15 p.m. on the BSE.

Published on September 20, 2023 09:21

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