Vivimed's API business receives investment from OrbiMed

Vivimed Labs Limited has signed definitive agreements to facilitate an investment of ~Rs 277 cr by OrbiMed Asia.

Sep 26, 2017 06:09 IST India Infoline News Service

Vivimed Labs Limited, an India based healthcare and specialty Chemicals Company, has signed definitive agreements to facilitate an investment of ~Rs 277 cr by OrbiMed Asia into the Company's subsidiary, Vivimed Labs Mascarene Ltd, the holding entity of the company's API business, UQUlFA. Recently, Its FDF manufacturing facility located in Jeedimetla has been approved by Ukraine ministry of Health and accredited with GMP Certification

UQUIFA has three US FDA inspected manufacturing sites across Spain and Mexico which caters to the generic API and CDMO API segments of the global pharmaceutical market. UQUIFA contributes ~63% of the company's total consolidated revenues. UQUIFA’s generics segment has realized material growth due to strong underlying end-market generic drug demand, price growth, and new customers.

The proceeds of this fund raised will be utilised by the Company primarily for, debt reduction, optimisation of capital structure at the parent entity level and investment in the API business for capacity augmentation and organic growth. We are positive on the stock on account of its strong business outlook on API business.

Vivimed Labs Ltd is currently trading at Rs 138.45, up by Rs 1.2 or 0.87% from its previous closing of Rs 137.25 on the BSE. 
The stock is currently trading above its 50 DMA.

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