Aurobindo Pharma to Acquire 80% Stake in A1 Biochem’s CRO Business for $17 Million

Deal to strengthen Apitoria Pharma’s move toward a CRDMO platform

Aurobindo Pharma Limited has announced that its wholly owned subsidiary, Apitoria Pharma Private Limited, has approved the acquisition of an 80% stake in the Contract Research Organization (CRO) business of A1 Biochem Group.

The transaction values the business at an enterprise value of $17 million on a debt-free and cash-free basis.

The acquisition was approved by the Apitoria Pharma board at its meeting held on July 23, 2026.

The deal is expected to help Aurobindo Pharma expand beyond its existing API manufacturing operations and build a broader Contract Research, Development and Manufacturing Organization (CRDMO) platform.

Apitoria to acquire 80% ownership

Under the proposed transaction, Apitoria Pharma will acquire an 80% ownership interest in A1 Biochem Labs (India) Private Limited.

The existing promoter of A1 Biochem Group will retain the remaining 20% stake in the Indian company.

As part of the transaction structure, A1 Biochem Labs (India) will also acquire 100% ownership of A1 Biochem Labs LLC in the United States.

The CRO business currently operated through A1 Biochem Research (India) Private Limited will also be transferred to A1 Biochem Labs (India) Private Limited.

Apitoria will invest $13.6 million in cash to acquire its 80% stake, subject to customary adjustments at the time of closing.

The transaction is still subject to the conditions included in the definitive agreements and the required regulatory approvals.

The acquisition is expected to be completed within 90 to 120 days.

A1 Biochem brings CRO and research capabilities

A1 Biochem Group operates as a CRO serving pharmaceutical companies, biotechnology companies and academic institutions.

The company provides a range of chemistry and research services that can support drug development programmes.

Its capabilities include custom synthesis, medicinal chemistry, route scouting, analytical development and rapid process scale-up.

These services allow customers to work with the CRO during different stages of drug development before moving toward larger-scale manufacturing.

The group operates scientific laboratories in Hyderabad, India, and Wilmington, North Carolina, in the United States.

It employs more than 90 scientists and operates more than 50 fume hoods across its facilities.

The business is led by Dr. Rajendra Gadikota, who has more than 25 years of experience in the pharmaceutical industry. He is expected to continue with the business following the acquisition.

A1 Biochem reported over ₹1 billion in turnover in FY2025-26

The CRO business has reported significant revenue in recent financial years.

Its reported turnover was:

• ₹608.9 million in FY2023-24
• ₹1,062.2 million in FY2024-25
• ₹1,024.4 million in FY2025-26

For FY2025-26, the group reported EBITDA of ₹465.46 million.

The business also has an established customer base of more than 50 customers and has completed more than 800 projects in the United States.

A1 Biochem serves customers in India and the US and also exports its services to international markets, including the Netherlands, France and Japan.

Aurobindo Pharma wants to expand across the API value chain

The acquisition fits into Aurobindo Pharma's broader strategy of expanding its presence across the API value chain.

Apitoria Pharma already operates in large-scale and regulatory-compliant API manufacturing.

However, the company has been looking to add front-end research and development capabilities to its existing manufacturing operations.

The acquisition of A1 Biochem's CRO business could help fill that gap.

Instead of only participating in the later manufacturing stages, Apitoria would gain access to research and development capabilities that can support customers earlier in the product development process.

This could allow the company to build a more integrated CRDMO offering.

From research to manufacturing under one platform

The main idea behind the acquisition is to connect research and manufacturing capabilities.

A pharmaceutical or biotechnology company may need help with chemistry research and drug development before it requires commercial-scale API manufacturing.

With A1 Biochem's CRO capabilities and Apitoria's existing API manufacturing infrastructure, Aurobindo Pharma could potentially support customers across more stages of the product life cycle.

This could also create opportunities for longer customer relationships.

Instead of working with customers only when they need large-scale API production, the combined business could engage with them earlier through research and development services.

The company expects the acquisition to broaden its service offerings and complement its current API manufacturing operations.

The deal will create a US and India research network

A1 Biochem's existing operations in India and the United States give the proposed CRDMO platform an international footprint.

The Hyderabad facility provides access to India's growing pharmaceutical research and development ecosystem.

The Wilmington laboratory gives the business a presence in the US market and supports relationships with international pharmaceutical and biotechnology customers.

The group already provides services to customers across several countries.

This existing international network could help Apitoria expand its reach while offering customers access to research and manufacturing capabilities through a wider platform.

A1 Biochem has completed more than 800 projects

The CRO has already built experience across a large number of research programmes.

More than 800 projects have been completed in the United States, while the business serves a customer base of more than 50 clients.

Its research capabilities cover areas such as custom synthesis and medicinal chemistry.

The company also works on route scouting and analytical development, along with rapid process scale-up.

These capabilities are relevant to pharmaceutical companies that need to move a molecule from early research toward a process that can eventually be manufactured at a larger scale.

Aurobindo says the deal is not a related-party transaction

Aurobindo Pharma has clarified that the proposed acquisition is not a related-party transaction.

The company also stated that its promoters and promoter group entities do not have any interest in the target companies or the CRO business being acquired.

The transaction has been disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The regulatory filing was signed by B. Adi Reddy, company secretary, on behalf of Aurobindo Pharma Limited.

Companies involved in the transaction

A1 Biochem Labs (India) Private Limited was incorporated on November 11, 2021.

A1 Biochem Research (India) Private Limited was incorporated on July 18, 2022.

A1 Biochem Labs LLC in the US was incorporated in September 2015.

Following completion of the transaction, Apitoria Pharma will hold 80% of the Indian business, while the existing promoter will retain 20%.

The Indian company will also own the US subsidiary, while the CRO business will be consolidated under A1 Biochem Labs (India).

The acquisition expands Apitoria’s role in pharmaceutical development

For Apitoria Pharma, the transaction represents a move beyond its established position in API manufacturing.

The addition of CRO capabilities could allow the company to participate in earlier stages of pharmaceutical development and provide services that continue through development and manufacturing.

The proposed CRDMO platform would combine A1 Biochem's research capabilities with Apitoria's manufacturing infrastructure.

The transaction remains subject to closing conditions and customary regulatory approvals, with completion expected in the next 90 to 120 days.