On Sensex, Laurus Lab closed at Rs292.25 per piece up 2.5%. The stock has gained to an intraday high of Rs298.80 per piece as investors remained bullish entire Thursday's trading session over the new agreement with Richcore.
As per the deal, Laurus will acquire 72.55% of Richcore’s shares from Eight Roads Ventures and VenturEast for a value of Rs246.7cr.
Notably, Richcore's current promoters of Richcore led by Subramani Ramachandrappa will continue as promoters of Richcore and will be responsible for its management and operations. Laurus Labs will fund the acquisition from its internal accruals and this acquisition will be revenue and PAT accretive.
With this deal, Laurus will help and drive Richcore to achieve scale and improve product offerings. With this acquisition, Laurus adds a fourth revenue stream to its three existing divisions - API, Formulations and Synthesis.
On the closure of the transaction, Richcore will be renamed to Laurus Bio Pvt Ltd.
CEO of Laurus Labs Dr Satyanarayana Chava said, “we are very excited about this acquisition, as this gives us entry into high barrier biotechnology segment. Laurus Labs will bring scale to Richcore’ s operations and can become a major player in the biotech CDMO space. This will also help Laurus in becoming a leader in biocatalysis as Richcore brings significant expertise in enzyme development for pharmaceutical and other industrial applications."
Subramani Ramchandrappa, Chairman & Managing Director, Richcore Lifesciences said, “Richcore and Laurus Labs coming together marks the convergence of Biotechnology and Chemistry faculties. Leveraging the synergies arising from Laurus’s experience and Richcore’s innovation, we plan to build scale as we continue to serve our existing customers and enter new biotech segments."
Richcore is a fast-growing biotech company with its advanced R&D and manufacturing facilities, develops and manufactures biotech products critical for manufacturing biological drugs.
Richcore has large scale fermentation capabilities and manufactures animal origin free (AOF) recombinant products. These products help vaccine, insulin, stem-cell-based regenerative medicine and other biopharma companies eliminate dependency on animal and human blood-derived products and in turn produce safer medicines.