Alkem Laboratories Launches New Wholly Owned Subsidiary: Alkem Wellness Limited

On September 16, 2024, Alkem Laboratories Limited announced via a stock exchange filing that it had incorporated a new Wholly Owned Subsidiary named ‘Alkem Wellness Limited’.

Alkem Wellness Limited, a newly incorporated wholly owned subsidiary (WOS) of Alkem Laboratories Limited, has an authorised share capital of ₹100 crore, divided into 10 crore equity shares of ₹10 each. The subscribed share capital stands at ₹5 crore, with 50 lakh equity shares of ₹10 each. Currently, the subsidiary has no turnover. 

Since Alkem Wellness is a WOS, it is classified as a related party to Alkem Laboratories, and the acquisition is carried out at arm’s length. 

Alkem Wellness operates in the pharmaceutical industry, with a primary focus on the business of drugs, pharmaceuticals, and drug formulations. No governmental or regulatory approvals were required for this acquisition.

Acquisition Details

The acquisition does not have an applicable completion timeline as it is an internal incorporation. The acquisition was completed through cash consideration. The company subscribed to 50 lakh equity shares of ₹10 each, totaling ₹5 crore. Alkem Laboratories Limited has acquired 100% of the shares in Alkem Wellness Limited.

About Alkem Wellness Limited

Alkem Wellness Limited, incorporated on September 16, 2024, in India, is focused on the business of drugs, pharmaceuticals, and drug formulations. As the entity is newly formed, no turnover data is available for the last three years.

About Alkem Laboratories Limited

Alkem Laboratories Limited operates globally in the pharmaceutical industry, focusing on developing, manufacturing, and selling pharmaceutical and nutraceutical products. Founded in 1973, the company set up its first manufacturing unit in Taloja in 1978. It opened a second plant in Mandva, Gujarat, in 1992, which was later converted into an API facility in 2005. Alkem expanded through acquisitions, such as buying Pharmacor Pty. Ltd, a generic drug company in Australia, in 2009, and a formulation manufacturing plant in the US in 2015. In 2020, the company launched a new formulation facility in Indore and a biologic/biosimilar plant in Pune. In 2023, Alkem entered the ophthalmology market in India with its new eye care division.

On September 17, 2024, the share price of Alkem Laboratories Limited opened at ₹6,345.00, touching the day’s high at ₹6,357.95, as of 12:13 PM on the NSE.

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