Hyderabad: GVK Bio has acquired Aragen Bioscience Inc., a US-based pre-clinical contract research organisation (CRO), for an undisclosed amount.
This is the first overseas acquisition by the Hyderabad-based company, which offers specialised services to global customers in small-molecule discovery and development as well as contract research.
The acquisition will scale up its expertise to large-molecule research and development services and biotech products.
“We have taken a majority stake of 65 per cent. The remaining 35 per cent will be acquired over the next two years. An agreement to this effect has been signed between the two companies,” said CEO Manni Kantipudi. He did not disclose the financial details.
GVK Bio will acquire the capital stock of the privately-held US company. Aragen Bioscience is based in San Francisco. It has about 50 employees, Kantipudi told Business Line.
The company took the buyout route as building similar capabilities would take at least 5-7 years. “The synergies will immediately enable us to offer services to large bio-pharma companies. At least 150 of our clients are bio-pharma firms. Similarly, of Aragen’s 70 customers, at least 20 are into bio-pharma,” he said.
The deal enables GVK Bio, an unlisted entity with 350 customers, to expand and achieve a significant US presence. At present, it has a small sales and marketing presence in the US.
“Aragen’s scientific expertise in large-molecule R&D services combined with GVK Bio’s scale, resources, and global reach, will create significant synergies for both companies,” said Rick Srigley, President and CEO of Aragen.
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