Aurobindo Pharma Ltd is in talks to buy the Russia business of Mumbai-based Shreya Life Sciences Pvt. Ltd in a deal potentially valued between $80 million and $100 million, two people aware of the discussions said on condition of anonymity.
According to these people, Aurobindo Pharma has given a term sheet and talks currently hinge on the final valuation. “SLPL is keen to retain a part of the business and may decide against selling everything,” the first person mentioned above said.
Set up in 2001, Shreya Life Sciences makes and markets a wide range of pharmaceutical products. The firm in 2002 launched operations in Russia, where it currently offers more than 31 prescription, over-the-counter (OTC) and generic products.
Shreya Life Sciences Russia operates through major distributors which supply its products to more than 25,000 retail pharmacies (aptekas) across the country. In addition, its products are also distributed through the approved list of the Russian government’s Public Distribution System.
Apart from Russia, the company also has operations in Ukraine, Uzbekistan, Belarus and Kazakhstan in the region and globally in Africa, South America and South-east Asia.
Overall, Shreya Life Sciences has presence in therapeutic segments such as cardiology, diabetology, anti-microbials, anti-tuberculosis, anti-osteoporotics, anti-malarials, gastrointestinals, pain management, gynaecology, paediatric care, infertility management and diabetes care. The company has a product portfolio comprising more than 200 products across various therapeutic segments.
Shreya Life Sciences has also entered into strategic business alliances with various companies and institutes such as Biotech GmBH, Lallemand and Institute Rosell, SciGen, for development and marketing of its products.
According to recent corporate filings, the firm generated net sales of Rs268.92 crore in 2015-16, as against Rs354.68 crore in 2014-15.
An email sent to Aurobindo Pharma was not answered till press time. A spokesperson for Shreya Life Sciences said, “We are not considering any sale of our Russian business. We have certain market authorization/registrations which are currently not being used by us in Russia and we are at best exploring partners for co-marketing rights for such registrations.”
However, the second person cited earlier said, “The company is exploring options to sell parts of the international business to pare debt.”
Hyderabad-based Aurobindo Pharma has been one of the most acquisitive domestic pharma companies. Mint reported earlier in August that Aurobindo, along with Intas Pharmaceuticals Ltd, was in a race to acquire a part of the European assets of Israeli generic drugmaker Teva Pharmaceutical Industries Ltd in a deal which, if completed, could be the biggest overseas acquisition by an Indian pharma company.
In February, Aurobindo Pharma acquired four biosimilar products from Swiss firm TL Biopharmaceutical AG for an undisclosed amount. In January, the company agreed to buy Portugal’s Generis Farmaceutica SA from Magnum Capital Partners for €135 million (around Rs969 crore).
In November Arrow Generiques SAS, the French subsidiary of Aurobindo Pharma, signed a deal to acquire select commercial products in France from Teva.
Aurobindo Pharma is currently among the top 10 domestic pharma companies in terms of consolidated revenues. It has presence in 125 countries and generates close to 70% of its revenue from overseas markets.
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