Senores Pharmaceuticals is an Ahmedabad-based pharma company. The company has concluded an agreement to acquire a portfolio of 14 Abbreviated New Drug Applications (ANDAs) from Dr. Reddy’s Laboratories. The deal was executed through Senores’ wholly owned US subsidiary, Senores Pharmaceuticals, Inc., USA and marks a major milestone in the company’s US expansion.
Senores Pharma – Dr Reddy’s Acquisition Details
The portfolio acquired includes 13 ANDAs that have been approved by the US FDA and 1 ANDA pending approval. As per IQVIA and Symphony market research data, the addressable market opportunity for these products in the US is estimated to be between USD 421 million to USD 1.13 billion.
Senores Pharmaceuticals will fund this acquisition through the proceeds of its public offer, which raised INR 582 crore in December 2024. This is in line with the company’s Red Herring Prospectus.
Senores Pharmaceutical launched its IPO on 20 December 2024, the issue size was INR 528.4 crore. The issue got an impressive 93.4X subscriptions and was listed at a 42.47% premium over investment. However, the post-listing performance is a roller-coaster ride. The stock is currently trading around listing day price, or we can say 6% down from its peak of INR 607.35 per share.
Swapnil Shah, Managing Director, Senores Pharmaceuticals, said:
“We are happy to announce the acquisition of products from Dr. Reddy’s. It covers various therapeutic areas with growing demand. These products can be sold through multiple channels, including government institutions, retail pharmacies and specialty clinics. This portfolio adds significantly to our product basket in the US and also has value in other regulated and semi-regulated markets.”
Market Impact and Future Growth
The announcement of the acquisition had an immediate impact on the stock market, with Senores Pharmaceuticals’ stock surging by over 6% on 04 March 2025 and 6.09% on 5 March 2025. The stock hit an intraday high of INR 618 on 6 March 2025 and then declined to a level of INR 562.50, down 4.03% from the previous day. At the time of writing this report, it is trading at around INR 573.55 per share.
Dr. Reddy’s Laboratories’ stock remained stable and was trading at INR 1,133.50 per share on NSE. Analysts attribute this stability to Dr. Reddy’s strategy of monetizing non-core assets and focusing on high-growth therapeutic segments.
Financial Outlook and Revenue Projections
Senores Pharmaceuticals is projecting strong financial performance for the upcoming fiscal years, driven by the acquired ANDAs and its growing contract development and manufacturing organization (CDMO) segment. According to Shah, the company expects its CDMO segment to contribute 35-40% of its total revenue in FY26.
For FY25, Senores Pharma anticipates revenue between INR 400 – 420 crore, while it aims to surpass INR 700 crore in FY26, supported by improved operational efficiency and increased product offerings. The company also reported that its current debt stands at INR 140 crore after repaying INR 90 crore in obligations.
Strategic Expansion in the US Market
With this acquisition, Senores Pharmaceuticals strengthens its foothold in the highly competitive US generics market. The newly acquired ANDAs include a mix of controlled substances and general category drugs, catering to diverse market segments.
Senores Pharma already holds 27 ANDAs and 21 contract manufacturing and outsourcing (CMO/CDMO) products approved for distribution in the US. The company also manufactures complex generics and critical care injectables, serving more than 40 countries worldwide.
The company has two formulation manufacturing facilities:
- Atlanta, US: USFDA-approved and DEA/BAA-compliant.
- Chhatral, Ahmedabad: WHO-GMP approved for emerging markets.
Additionally, Senores operates two active pharmaceutical ingredient (API) manufacturing units in Ahmedabad—one in Chhatral and another in Naroda.
Win-Win for Both
Dr. Reddy’s Laboratories is streamlining its portfolio and focusing on core assets, while Senores Pharmaceuticals gets a set of products that will strengthen its position in the US generics space.
Shah said “It’s a win-win for both companies as we are playing in different spaces. We will disclose the acquisition cost for these 14 products at the right time.”
Bottomline
Acquiring 14 ANDAs from Dr. Reddy’s Laboratories is a big step in Senores Pharmaceuticals’ aggressive growth strategy. With a presence in the US generics market, growing revenue and operational efficiency, Senores Pharma is going to grow big in the next few years.
Investors are liking this move, as seen in the stock rise after the announcement. As the company expands its market presence and product portfolio, it will be a major player in the global pharma space.
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