The Hindu Business Line : US co Aptuit invests $100 m in Laurus Labs, forms new entity

Hyderabad June 19 The Atlanta-based contract drug manufacturing company Aptuit Inc has invested $100 million in contract research services provider Laurus Labs to form a new entity Aptuit Laurus in India.

"We will pump in another $100 million in phased manner to acquire 51 per cent stake in Aptuit Laurus by March 2009," Mr Michael A. Griffith, Chief Executive Officer, Aptuit Inc, told newspersons here through video conference from Atlanta.

"In fact, I describe the deal as a merger and the promoters of Laurus will also get some stake in Aptuit Inc," Mr Griffith said, declining to divulge further details on the deal.

While the Hyderabad-based Laurus has a facility at ICICI Knowledge Park, and Aptuit Laurus would have facilities in the Pharma City, Visakhaptnam and an informatics centre in Bangalore, Mr Chava Satyanarayana, founder-CEO of Laurus Labs, said.

Seven-member board

The new company would be headed by Mr Satyanaryana as CEO and a seven-member board of governors comprising designers from both the partners.

"Globally, Aptuit has over 600 clients. With Aptuit Laurus in India now, we expect to add 100 more key clients soon," Mr Griffith said.

Mr Satyanarayana said the company would offer a complete suite of development services including medicinal chemistry, pre-clinical trails, solid state chemistry, consulting, clinical packaging and logistics, phase I, II research and manufacturing of large dosage forms.

"Our 160,000 sq.ft. facility in Hyderabad employs over 200 scientific personnel. Aptuit's 100-strong team at its informatics development centre in Bangalore are with us now. By the end of next year we expect to increase our headcount to 800," he said.

The construction of a 34-acre facility in Visakahapantam was under way and the company would have fully integrated capabilities that span the entire drug development cycle, he added.

On the revenue expectations, Mr Satyanarayana said in the first year of its operations, Aptuit Laurus was hoping to cross $10 million.

"India currently has a share of 15 to 20 per cent in the global pharmaceutical outsourcing market which is expected to grow to 50 per cent by 2015. Aptuit will strive to keep similar pace in revenue growth from India," Mr Griffith said.

Aptuit Inc, a $300-million company, employs over 2,000 globally in its 15 facilities with presence in over 70 countries.

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