INDIA – Alembic Pharma has acquired the remaining 40% stake in Aleor Dermaceuticals from its joint venture partner Orbicular Pharma Technologies in order to expand its skin-related manufacturing and marketing footprint.

With dermatology being a high-growth potential segment, Aleor’s product offerings, which include cream, gel, ointment, shampoo, lotion, solutions, sprays, foams, microsponge and nanoparticulate platform-based products, are expected to improve operational and cost efficiencies.

The dermatology market is expected to grow in the double digits and increase its market share within the pharma market, according to an IQVIA prognosis report.

Alembic Pharmaceuticals is a vertically integrated research and development pharmaceutical company. It manufactures and markets generic pharmaceutical products globally.

The merger will integrate business operations and give Alembic’s existing portfolio a boost. The acquisition fits well with the company’s strategic planning and growth trajectory to gain a larger market share in various segments of its pharma business, according to the statement.

According to Alembic’s managing director Pranav Amin, the acquisition will further bolster the company’s global reach with cutting-edge research and development in the dermatology space.

It will also enhance our integrated dermatology platform with a comprehensive collection of scientifically-proven products for daily skincare regimens and peri-procedural use,” said Amin.

Acquisition expands Alembic’s marketing footprint

Alembic Pharma, which owned 60% of Aleor, will see its skin-related manufacturing and marketing footprint expanded as a result of the acquisition, which will complement the former’s business in both domestically and internationally.

Under Aleor, Alembic not only has a USFDA approved facility, but also 15 products under development along with 30 abbreviated new drug applications (ANDAs).

Furthermore, the expansion of the business necessitates adequate capital and resource commitments, and thus the merger will enable the pooling of abundant resources and provide impetus to growth at a consolidated level.

According to the statement, the acquisition will “unlock the full potential of Aleor” and “drive significant value creation through synergies with Alembic.”

MS Mohan, Managing Director of Orbicular, stated that the company would now independently bolster its development capabilities in advancing several interesting and exciting opportunities in complex products.

The Aleor acquisition was approved by Alembic’s board of directors, subject to approval from the National Company Law Tribunal (NCLT) and other regulatory bodies.

As part of the transaction, the Aleor board of directors was reconstituted, with Orbicular nominees resigning.

Liked this article? Sign up to receive our regular email newsletters, focused on Africa and World’s healthcare industry, directly into your inbox. SUBSCRIBE HERE