Laurus, in the past, has successfully established new revenue streams (Hep-C, formulations) to diversify its sales mix away from LMIC ARV APIs.Acquisition of Richcore to add new capabilities. Laurus has announced acquisition of 72% stake in Richcore Lifesciences for Rs 2.5 bn, valuing the business at ~6X FY2021 sales and 15X FY2021 EBITDA. The acquisition provides Laurus with fermentation capabilities and offers diversification into newer areas including recombinant products with medium-to-long-term target of building vertically integrated biotech CDMO. We like Laurus’ strategy of identifying new revenue streams even as the Richcore acquisition is small to impact the near-term earnings profile.
Laurus has announced acquisition of 72.55% stake in Richcore Lifesciences, a Bangalore-based company for a consideration of Rs 2.5 bn, valuing Richcore at Rs 3.4 bn. Richcore posted 1HFY21 revenues and EBITDA of Rs 291 mn and Rs 113 mn, implying a valuation of 6X FY2021 revenues and 15X…
