Ajanta Pharma earmarks 1K cr for acquisitions to plug therapy gaps

Ajanta Pharma has earmarked over ₹1,000 crore for inorganic opportunities as it looks to plug gaps in select therapy areas, its joint managing director, Rajesh Agrawal, said while emphasising that the company was sharpening its growth focus on India and emerging markets.

- SOHINI DAS

The acquisition war chest will be deployed largely towards brand and portfolio acquisitions, rather than manufacturing assets, with dermatology, pain management, nephrology and gynaecology emerging as key focus areas. “We are looking at inorganic opportunities, but we are not desperate. This will largely be for therapy entry or for strengthening portfolios where gaps exist,” Agrawal said.

Ajanta recently entered nephrology and gynaecology, and sees meaningful scope for consolidation-led growth in these segments. Manufacturing acquisitions, however, remain firmly off the table.

According to Motilal Oswal Securities, Ajanta’s balance sheet strength provides ample headroom for acquisitions, with the company in net cash position and consistently generating strong operating cash flows.