Laurus Lab: Richcore acquisition marks entry into biotech
Laurus Labs share rose 5% in early trade on Thursday after the pharma firm inked a definitive agreement to acquire 72.55% of Richcore’s stake from Eight Roads Ventures and VenturEast for Rs 246.67 crore.
Share of Laurus Labs gained 4.82% to Rs 298.80 against the previous close of Rs 285.05 on BSE.
The acquisition of Richcore marks Laurus Labs’ entry into the broader biologics and biotechnology segments, providing the company access to its high growth areas, globally and in India.
Through this acquisition, Laurus Lab has not only cut short the gestation period but will provide a quantum jump in revenue.
Richcore is a biotech company based in Bengaluru and develops products critical for biological drugs; it also helps global customers contract research and scale-up their bioprocesses by providing contract research, development, and manufacturing services.
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.
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