Hyderabad-based Aurobindo Pharma on Monday said it will acquire the branded generic business of Veritaz for Rs 171 crore in cash.

Veritaz is a 100 per cent subsidiary of Trident Chemphar and it posted a turnover of Rs 127 crore for the year ended March 31, 2021. Its topline during the nine month period ended December 31 stood at over Rs 133 crore.

In a regulatory filing made after market hours, Aurobindo Pharma disclosed that the acquisition is being done to supplement plans to improve its presence in the domestic formulation business.

Veritaz was formed on September 14, 2006 and so far its promoters have invested more than Rs 80 crore to build up its distribution infrastructure and brands.

Hyderabad-based firm said the transaction comes into effect from April 1 and is expected to close by May.

“This acquisition vehicle will greatly help us as a launch pad for marketing biosimilar and other products in India,’’ it added. The addressable market of Veritaz’s current product portfolio is Rs 26,775 crore.

The target company has around 40 brands marketed across the acute and critical care therapeutic segments.

The firm caters to anti-infective and pain-management therapeutic areas and has a pipeline of products to enter into the cardio or diabetic and ortho and gynaecology segments. Veritaz has a sales and distribution network of 900 field force.