Orchid Chemicals and Pharmaceuticals is acquiring a Chennai-based firm for Rs 260 million ($5.4 million) in an all-cash deal to expand to speciality drugs, the Bombay Stock Exchange said on Tuesday.
Orchid, which is also based in Madras, will acquire the assets, brands, business and plant of Mano Pharmaceuticals, including an associate company Sali Healthcare, a notice on the exchange Web site www.bseindia.com said.
Orchid's shares were up 2.46 per cent at Rs 74.95 in the morning, after rising as much as 5.3 per cent in early trade, on the Bombay exchange whose main index was down 0.4 per cent.
Mano Pharmaceuticals specialises in neuro-psychiatry, cardiovascular and anti-diabetic formulations, or ready-to-take drugs, and had revenue of 280 million rupees in the year to November.
"This acquisition provides the needed diversification high growth, high potential speciality therapies," the notice quoted Raghavendra Rao, managing director of Orchid as saying.
Orchid mainly makes anti-infective bulk drugs and formulations.