Aurobindo Pharma completes A1 Biochem CRO acquisition to build integrated CRDMO platform

Aurobindo Pharma Ltd has completed the acquisition of the Contract Research Services business of A1 Biochem Group through its wholly owned subsidiary, Apitoria Pharma Private Ltd, advancing its plan to build an integrated contract research, development and manufacturing organisation platform.

Following the completion of conditions under definitive agreements, Apitoria has acquired an 80 per cent stake in A1 Biochem Labs (India) Private Ltd. Dr Rajendra Gadikota, the former promoter of A1 Biochem Group, will retain the remaining 20 per cent stake.

The transaction also includes the US business. A1 Labs India, through its wholly owned subsidiary, A1 Biochem USA Inc, has acquired a 100 per cent membership interest in A1 Biochem Labs LLC, USA, which operates as a step-down subsidiary in the United States.

The acquisition gives Aurobindo access to a contract research organisation platform with more than 50 customers and a track record of completing over 800 projects across India and the US. For Aurobindo, which has historically been focused on vertically integrated APIs and finished formulations, the deal adds customer-facing research capabilities that can potentially be linked with its development and manufacturing infrastructure.

Aurobindo said the acquisition complements Apitoria’s manufacturing capabilities and broadens the services that can be offered to customers across the development cycle. The company’s objective is to extend customer engagements beyond individual research assignments into development and manufacturing work, where contract relationships can be longer in duration.

The closing follows management’s earlier indication that the A1 Biochem transaction was a faster route into the integrated CRDMO business than a greenfield build-out. In its recent quarterly commentary, management said A1 Biochem had built credibility and customer relationships over roughly a decade but faced capacity constraints. It had indicated an ambition to scale the incoming business by three to five times over three to five years, though the company has not disclosed financial targets or a transaction value.

The strategic move comes as Aurobindo seeks to add new growth platforms alongside its core generics operations. Its existing operations span API manufacturing, oral formulations, injectables and speciality dosage forms, while biologics, biosimilars and contract manufacturing are being developed as longer-term businesses. The company is also building TheraNyM, its biologics contract manufacturing platform, where meaningful steady revenue is expected from 2028 for the first unit, subject to qualification, customer filings and commercial execution.

Aurobindo’s operating performance has remained firm in the latest reported quarter. Consolidated net sales rose 16.3 per cent year-on-year to Rs 9,150.35 crore in the June 2026 quarter, while profit after Tax increased 25.7 per cent to Rs 1,033.57 crore. Operating margin before other income improved to 20.56 per cent from 20.37 per cent a year earlier.

The acquisition does not immediately establish the revenue or profitability contribution from A1 Biochem. Its value will depend on Apitoria’s ability to expand research capacity, retain existing customers and convert research projects into development and manufacturing assignments. Contract research also requires sustained scientific talent, quality systems and regulatory execution, particularly for work involving global customers.

As of 3:52 pm on October 1, 2026, Aurobindo Pharma shares were trading at Rs 1,675.00. The stock was about 3.5 per cent below its 52-week high of Rs 1,735.00 and had gained 49.87 per cent over the preceding year, compared with a 3.22 per cent decline in the BSE 500.

Disclaimer: The article is for informational purposes only and not investment advice.