Laurus Labs has signed a definitive agreement to acquire a 72.55 per cent stake in Bengaluru-based Richcore Lifesciences Pvt Ltd for ₹247 crore.

“We are very excited about this acquisition, as this gives us entry into the high-barrier biotechnology segment. Laurus Labs will bring scale to Richcore’s operations and can become a major player in the biotech space,” Satyanarayana Chava, founder and CEO, Lauras Labs, said in a release on Wednesday.

“This acquisition will also help Hyderabad-based Laurus in becoming a leader in biocatalysis, as Richcore brings significant expertise in enzyme development for pharmaceutical and other industrial applications,” he added.

Subramani Ramchandrappa, Chairman & Managing Director, Richcore Lifesciences said: “Leveraging the synergies arising from Laurus’s experience and Richcore’s innovation, we plan to build scale as we continue to serve our existing customers and enter new biotech segments.’’

Richcore, a fast-growing biotech company based in Bengaluru with its advanced R&D and manufacturing facilities, develops and manufactures biotech products critical for manufacturing biological drugs.

Richcore also helps its global customers develop and scale-up their bioprocesses by providing contract research, development, and manufacturing services.

This acquisition marks Laurus Labs’ entry into the broader biologics and biotechnology segments, providing the company access to its high growth areas, globally and in India.

With this acquisition, Laurus adds a fourth revenue stream to its three existing divisions — API, formulations and synthesis.

Following the successful closure of the transaction, Richcore will be renamed Laurus Bio Pvt Ltd.

Richcore has large scale fermentation capabilities and manufactures animal-origin free recombinant products. These products help vaccine, insulin, stem-cell based regenerative medicine and other biopharma companies eliminate dependency on animal and human blood derived products and in turn produce safer medicines.

Richcore is currently in its growth phase and its second manufacturing plant near Bengaluru is expected to be completed by March 31, 2021.

Richcore has raised early and growth stage funding from Eight Roads Ventures, VenturEast Proactive Fund and VenturEast Life Fund III.

The current promoters of Richcore led by Subramani Ramachandrappa will continue as promoters of Richcore and will be responsible for its management and operations.

Laurus Labs will fund the acquisition from its internal accruals and this acquisition will be revenue and PAT accretive.

The deal will be closed on or before March 31,2021.