A contract chemistry lab on the North Carolina coast now belongs to one of India’s largest generic drugmakers. Hyderabad-based Aurobindo Pharma disclosed on October 2, 2026 that its wholly owned subsidiary Apitoria Pharma Private Limited had completed the acquisition of A1 Biochem Group’s contract research services business, bringing Wilmington’s A1 Biochem Labs LLC into the group for a cash consideration of $15.247 million. The closing came about ten weeks after Apitoria’s board approved the deal on July 23 at an enterprise value of $17 million.
How the Deal Is Structured
Apitoria did not buy the U.S. lab outright. It now owns 80% of A1 Biochem Labs (India) Private Limited, and A1 Biochem founder Dr. Rajendra Gadikota holds the other 20% after subscribing to equity and convertible debentures on September 30. The Indian company’s wholly owned U.S. entity, A1 Biochem USA Inc., then bought 100% of A1 Biochem Labs LLC from Gadikota for the $15.247 million. Because Gadikota also sits on the board of the Indian entity, Aurobindo classified that purchase as a related-party transaction and said it was conducted at arm’s length, with no government or regulatory approvals required. Under the agreements, Apitoria holds an option to buy Gadikota’s remaining stake at a later date.
What A1 Biochem Brings
According to Aurobindo’s July filing, A1 Biochem Group provides custom synthesis, medicinal chemistry, route scouting, analytical development, and rapid process scale-up services to drugmakers, biotech companies, and academic institutions, mostly in the U.S. The group runs two laboratories, one in Wilmington and one in Hyderabad, with more than 90 scientists and over 50 fume hoods, and the company says it serves a base of more than 50 clients with over 800 completed projects. The U.S. entity was incorporated in September 2015. Its revenue has moved around: the LLC reported $6.35 million in 2023, then $9.23 million in 2024 and $5.92 million in 2025. Gadikota, who has more than 25 years in the business, will stay on with the group.
Why Aurobindo Wants a Front-End Research Arm
Apitoria’s core business is large-scale manufacturing of active pharmaceutical ingredients (APIs), the chemical compounds that make a drug work. In its July disclosure, Aurobindo said adding A1 Biochem’s early-stage chemistry capability would let it build a dedicated contract research, development and manufacturing organization (CRDMO) platform. The logic is that a client who starts with a lab-scale synthesis project could stay with the same partner through commercial API production, which Aurobindo describes as longer life-cycle engagement with customers. The company framed the deal as complementary to Apitoria’s existing manufacturing operations.
