Granules India Board Approves Acquisition of 100% Stake in Senn Chemicals AG for Rs 192.5 Crore

Introduction:

Granules India has received approval from its board to acquire 100% of Senn Chemicals AG, a Switzerland-based CDMO specializing in peptide synthesis. The acquisition is valued at Rs 192.5 crore (CHF 20 million).

Senn Chemicals, which specializes in liquid-phase and solid-phase peptide synthesis (LPPS and SPPS), provides contract research, development, and manufacturing services for the pharmaceutical, cosmetics, and theragnostic industries.

The acquisition is poised to bolster Granules India’s entry into the high-growth peptide therapeutics sector, especially in developing peptide-based drugs for diabetes and obesity treatment.

Strategic Move in High-Growth Peptide Therapeutics:

The deal is seen as a significant milestone in Granules India’s journey to enhance its capabilities in the rapidly expanding peptide therapeutics market. Specifically, it will help the company develop next-generation therapeutics, including GLP-1 receptor agonists, a growing segment in the anti-diabetic and anti-obesity treatment fields.

Granules India and Senn Chemicals have already been collaborating on the development of two GLP-1-based active pharmaceutical ingredients (APIs), with further peptide-based APIs planned for development through Senn’s R&D expertise.

Granules India Expands into Peptide Therapeutics with Acquisition of Senn Chemicals AG:

Synergy with Senn’s Expertise:

Senn Chemicals is known for its expertise in peptide synthesis, with a strong portfolio in peptide-based applications. The company’s revenue for CY2023 stood at CHF 26.9 million, with projections of CHF 19.6 million in 2024. The acquisition will enable Granules India to leverage Senn’s specialized knowledge,

particularly in peptides, and integrate it with their own cost-efficient, large-scale manufacturing capabilities to drive the development of high-quality peptide-based solutions globally.

Granules India’s Vision and Growth Strategy:

Krishna Prasad Chigurupati, Chairman and Managing Director of Granules India, emphasized that this acquisition aligns with the company’s commitment to expanding into the next-generation therapeutic space. The strategic move into peptide therapeutics aims to position Granules India as a leading player in the field of complex and specialized medicines, ensuring scientific innovation and affordability for global customers.

Granules India Strengthens Peptide Therapeutics Portfolio with Acquisition of Senn Chemicals AG:

Senn Chemicals’ Perspective:

Rico Wiedenbruch, Chairman of Senn Chemicals AG, expressed excitement about the merger, highlighting Granules India’s scale, operational efficiency, and global reach within the pharmaceutical industry. The partnership is expected to accelerate Senn’s growth in peptide therapeutics and enhance its capabilities in delivering CDMO services.

Plans for Subsidiary in India:

In addition to the acquisition, Granules India’s board has approved the establishment of a wholly owned subsidiary (WOS) in India. This subsidiary will be integral to supporting the acquisition and operations of Senn Chemicals. The proposed WOS will have an authorized share capital of Rs 500 crore and a paid-up share capital of Rs 200 crore, subject to approval by the Ministry of Corporate Affairs (MCA) in India.

Granules India’s Financial Update:

Despite the strategic acquisition, Granules India recently reported a 6.41% drop in consolidated net profit to Rs 117.60 crore for Q3 FY25, alongside a marginal 1.55% decline in total revenue, which stood at Rs 1,137.70 crore compared to Q3 FY24. As of February 21, 2025, the stock price saw a 3.48% decline, closing at Rs 509.

Conclusion:

Granules India’s acquisition of Senn Chemicals AG is a calculated step to solidify its presence in the emerging field of peptide-based therapeutics. With a growing pipeline of peptide-based drugs and an enhanced CDMO platform, Granules India is set to capitalize on the growing demand for specialized therapeutics, offering long-term value for stakeholders.

FAQ

What is the significance of Granules India acquiring Senn Chemicals AG?
- Granules India’s acquisition of Senn Chemicals AG, a Swiss-based company specializing in peptide synthesis, marks a strategic move into the high-growth peptide therapeutics market. This acquisition strengthens Granules India’s capabilities in peptide-based drug development, particularly in the rapidly expanding anti-diabetic and anti-obesity treatment segments.
What is the total value of the acquisition?
- The acquisition is valued at Rs 192.5 crore (CHF 20 million).
What does Senn Chemicals AG specialize in?
- Senn Chemicals AG is a Contract Development and Manufacturing Organization (CDMO) specializing in liquid-phase and solid-phase peptide synthesis (LPPS and SPPS). They develop and manufacture peptides and peptide-based applications, offering contract research, development, and manufacturing services for global clients in pharmaceuticals, cosmetics, and theragnostics.
How does this acquisition align with Granules India’s strategy?
- The acquisition aligns with Granules India’s vision to expand into next-generation therapeutics, particularly peptide-based treatments. It provides access to Senn’s R&D capabilities and established customer relationships, while enabling Granules to enter the rapidly growing peptide therapeutics market, such as GLP-1 receptor agonists used in diabetes and obesity treatments.
What are the financials of Senn Chemicals AG?
- Senn Chemicals AG reported a revenue of CHF 26.9 million in 2023 and is expected to generate CHF 19.6 million in 2024. The company has a strong customer base across pharma, cosmetics, and theragnostic sectors.
What benefits will Granules India gain from this acquisition?
- Granules India will gain Senn Chemicals’ expertise in peptide synthesis and its established position in the CDMO space. This will complement Granules’ large-scale, cost-efficient manufacturing capabilities, enabling the company to deliver high-quality peptide-based solutions globally.
How will this impact Granules India’s business?
- The acquisition will enhance Granules India’s portfolio with new peptide-based therapeutics and strengthen its R&D capabilities. It will enable Granules to expand its product offerings and enhance its presence in specialized and high-growth therapeutic segments like anti-diabetes and anti-obesity treatments.
What is the timeline for the completion of the acquisition?
- The acquisition is expected to be completed by the first half of calendar year 2025.
What steps is Granules India taking in India to support the acquisition?
- Granules India’s board has approved the incorporation of a wholly owned subsidiary in India to facilitate the acquisition of Senn Chemicals AG. The subsidiary will have an authorized share capital of Rs 500 crore and a paid-up share capital of Rs 200 crore, subject to approval by the Ministry of Corporate Affairs (MCA).
What are the recent financial results for Granules India?

Granules India reported a 6.41% decline in its consolidated net profit to Rs 117.60 crore for Q3 FY25. Total revenue from operations also fell by 1.55%, amounting to Rs 1,137.70 crore compared to Q3 FY24.

How has the stock of Granules India performed recently?

As of February 21, 2025, Granules India’s stock saw a 3.48% decline, closing at Rs 509.

What is Granules India’s long-term vision with this acquisition?

Granules India aims to transform itself into a science and innovation-driven organization. The acquisition of Senn Chemicals AG will support this vision by enhancing their capabilities in complex and specialized therapeutics, ultimately allowing Granules to become a trusted partner in the growing global peptide therapeutics space.

What will the acquisition mean for Senn Chemicals AG’s customers?

For Senn Chemicals AG’s customers, the acquisition means access to Granules India’s large-scale, efficient manufacturing capabilities and a broader range of peptide-based solutions. The partnership is expected to enhance customer service and provide more innovative, high-quality products in the rapidly growing peptide therapeutics sector.

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