At a time when large drugmakers are looking at the policy uncertainty in the US and treading cautiously, Senores Pharmaceuticals has inked an agreement to buy 14 abbreviated new drug applications (ANDAs) from Dr Reddy’s Laboratories (DRL), for an undisclosed sum.

Of the acquired basket, 13 ANDAs have been approved by the US Food and Drug Administration and one is pending approval, the recently-listed Senores Pharma said.

Explaining the rationale behind acquiring product approvals to sell in the US, when large pharma companies were waiting for the dust to settle on the tariff and other wars, Swapnil Shah, Managing Director of Senores Pharmaceuticals told businessline, the change in policies were in fact “tailwinds” for the company’s business in the region. The company has a manufacturing facility in the US (Atlanta), and most of the acquired products were part of Government supply; a couple of controlled substances mandate local manufacturing and other speciality products are sold directly to clinics etc, Shah said. Government supplies are about 16 percent of the total US market and include programmes like Medicare, Medicaid, Veterans and the Defence, he said.

The whole cost of acquisition has not been disclosed. Shah said, the company had disclosed during the process of listing on the stock exchanges, that they would be looking to acquire products, rather than facilities. The cash flow from acquired products would be quicker, he added. “The acquisition will be funded through the Initial Public Offer proceeds raised by SPL. This is in line with the objects of the IPO stated in the Red Herring Prospectus,” a note from the company had said.

For Senores the acquired ANDA’s make sense given their market realities, just as for the selling company the decision was made possibly keeping its own scale of business and priority in mind, he explained. Senores expects to close March 31, 2025, with revenues of about ₹420 crore, he said.

Giving industry estimates, the company pegged the combined revenues of the acquired products at $421 Million (MAT December 2024). according to IQVIA (that does not look at institutional sales), and about $1.13 Billion (MAT September 2024), according to the specialty data aggregator Symphony.

Senores Pharma shares ended Tuesday, 6 per cent up, at ₹562.20 on the BSE.