- 06 Apr 2022
- ICICIdirect Research
SUVEN PHARMA ACQUIRES CASPER PHARMA
SUVENPHAR - 1306 Change: 30.90 (2.42 %)News: The Board of Directors of Suven Pharma has approved the purchase of entire share capital from the existing shareholders of Casper Pharma for Rs 155 crore through internal accruals. Casper Pharma has a formulation facility with capacity of 1.2 billion tablets/capsules in GMR Aviation SEZ, Hyderabad. Casper is yet to commence commercially viable operations and USFDA inspection is expected in next six months
Views: Suven Pharma has forayed into generic OSD formulations business with this acquisition and expects ~ 30 ANDAs over next 18 months. Casper has a long term contract (seven years) with US distributor on profit sharing basis and management expects ~ Rs 300 crore annual turnover from third year of acquisition. US generics is a challenging space with multiple headwinds, that coupled with the pending inspection of acquired facility brings uncertainty to realizations. We believe this acquisition to be margin dilutive and revenues will largely depend on product-mix. However, for time being we keep track of updates on USFDA inspection and more clarity on product line-up
Impact: Neutral