Indoco Remedies, a Rs. 975 crore plus pharma major, has acquired oral soild dosage (OSD) manufacturing facility located at Baddi of Micro Labs Ltd., a Bengaluru based company for an undisclosed amount. Indoco scrip moved up Rs. 8.65 in the afternoon session to Rs. 338.10 on BSE. Recently the scrip touched to its yearly high level at Rs. 360.

The facility is spread over an area of 18,000 sqm, out of which 11,000 is the built-up area. It produces 4.3 billion tablets and 50 million capsules per annum.

The acquisition is fuelled by the anticipated high growth in the company’s international business in the coming future. The facility will cater mainly to the Regulated markets and the necessary approvals from the regulatory authorities will be obtained soon.

“This acquisition will expand our capabilities as well as capacities in manufacturing and will strategically help to further strengthen our footprint in international business. The acquisition will be funded through a mix of debt and internal accruals.” said Aditi Kare Panandikar, managing director of Indoco Remedies Ltd.

The acquired manufacturing site is close to Indoco’s existing manufacturing plant in Baddi, Himachal Pradesh. Baddi will thus be another manufacturing hub for Indoco’s solid dosages business in the regulated markets.

With this acquisition, Indoco will now have 6 facilities for finished dosages and 3 for APIs. Out of these, 3 facilities for finished dosages, including sterile plant and 2 facilities for API manufacturing are USFDA approved.