Dr Reddy’s Subsidiary AOL Invests ₹6,500 Million in Step-Down Subsidiary APSL

Dr Reddy’s Laboratories has announced that its wholly-owned subsidiary, Aurigene Oncology Limited (formerly Aurigene Discovery Technologies Limited), has invested ₹649,99,99,520 (approximately ₹6,500 million) in Aurigene Pharmaceutical Services Limited (APSL).

Aurigene Pharmaceutical Services Limited issued 11,60,71,420 equity shares to AOL on May 30, 2024, at ₹10 each, with a premium of ₹46 per share.

Aurigene Pharmaceutical Services Limited reported a turnover of ₹443 crore for 2024. This investment constitutes a related party transaction as AOL and APSL are wholly-owned subsidiaries of Dr. Reddy’s Laboratories. However, it was carried out at arm’s length based on an independent valuation report. Other than this transaction, neither the promoter, promoter group nor any group companies are interested in AOL or APSL.

Aurigene Pharmaceutical Services Limited operates in the contract research, development, and manufacturing industry, providing comprehensive solutions in chemistry and biology, including discovery, development, and manufacturing services.

Objective of Acquisition

Aurigene Oncology Limited’s investment in Aurigene Pharmaceutical Services Limited aims to bolster the latter’s capital expenditure and working capital needs.

About Aurigene Pharmaceutical Services Limited

Aurigene Pharmaceutical Services Limited, a contract research, development, and manufacturing organisation (CRO/CDMO), offers comprehensive solutions in chemistry and biology encompassing discovery, development, and manufacturing services. Established on September 16 2019, the company has shown steady growth over the past three fiscal years, with turnover figures as follows: ₹443 crore in FY 2024, ₹331 crore in FY 2023, and ₹361 crore in FY 2022.

About Dr. Reddy’s Laboratories Ltd

Dr. Reddy’s Laboratories Ltd is a leading Indian pharmaceutical company offering a diverse portfolio of products, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical Services (CPS), generics, biosimilars, and differentiated formulations. Geographically, the company generates significant revenues from the USA, India, Russia, and other regions. Looking ahead, Dr. Reddy strategically focuses on niche products and injectables to drive future growth. Recent strategic moves, including divestments and acquisitions, underscore its commitment to innovation and expansion.

On May 31, 2024, the share price of Dr Reddy’s Laboratories Ltd. opened at ₹5,899.95, touching the day’s high of ₹ 5,904.65 as of 11:53 AM on the NSE.

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