Indoco Remedies advanced 1.50% to Rs 338.55 after the company announced that its board has approved the acquisition of 85% of equity stake of the US-based FPP Holding Company, LLC for $4 million from Contract Pharmacal Corp. (CPC).

FPP Holding is the holding company of Florida Pharmaceutical Products, LLC (FPP) which is based in Florida and engaged in marketing and distribution of generic pharmaceutical products in the USA. FPP Holding's consolidated turnover as on 31 December 2022 was $4.7 million.

FPP Holding and FPP being the part of the same industry as Indoco Remedies, would provide synergies, since the company would be engaged in manufacture of pharmaceutical products and FPP Holding through FPP would be engaged in the distribution and marketing of the pharmaceutical products in USA.

Aditi Panandikar, managing director – Indoco Remedies, said: “This development will facilitate exchange of knowledge and best practices, further enhancing the overall competitiveness and growth potential of both organizations. Leveraging FPP's well-established distribution network, Indoco will have a greater reach and accessibility to a wider US customer base.”

Indoco Remedies is engaged in the manufacturing and marketing of Formulations (finished dosage forms) and active pharmaceutical ingredients (APIs).

The pharmaceutical company's standalone net profit tumbled 37.16% to Rs 25.37 crore in Q4 FY23 from Rs 40.37 crore recorded in Q4 FY22. Revenue from operations grew by 6.94% year on year to Rs 428.05 crore in the quarter ended 31 March 2023.