Brooks Laboratories Plans to Exit JV, Eyes Sale of 49% Stake in Brooks Steriscience

Brooks Laboratories Ltd is preparing to sell its 49% stake in Brooks Steriscience Ltd, its joint venture with Steriscience Specialties, sources told Moneycontrol. The move aligns with OneSource Specialty Pharma Ltd’s (formerly Stelis Biopharma) board approval to explore acquiring the carbapenem manufacturing facility in Vadodara, Gujarat. The plant, established in 2015, produces antibiotics for severe multidrug-resistant infections and holds approvals from USFDA, EU GMP, and ANVISA. The facility gained strategic significance after the USFDA cleared Brooks Steriscience’s meropenem 2g injection on June 23, making it the first company to secure approval for the higher-strength formulation in the US. This follows prior approvals for 0.5g and 1g injections in August 2022. Earlier this month, Brooks shareholders approved the proposed divestment, citing it as being in the best interest of the company. Financial Rationale Liquidity pressure: Despite a 107% jump in FY25 profit before tax to ₹3.23 crore, Brooks has high working capital utilization (~90%). Debt burden: The company guarantees debt of ₹65 crore for the JV. Balance sheet relief: A successful exit would strengthen liquidity, cut debt exposure, and allow Brooks to focus on its core business in critical care injectables and CDMO services. Promoter Strategy Promoters Atul Ranchal (19.24%) and Rajesh Mahajan (17.36%), both industry veterans with 20+ years of experience, remain focused on expanding Brooks’ presence in critical care, CDMO, and semi-regulated export markets. Meanwhile, Brooks’ shares have rallied nearly 30% since the meropenem 2g USFDA approval and were trading 1.3% higher at ₹160 on the BSE on September 15. #BrooksLabs #PharmaStocks #Steriscience #USFDA #Antibiotics #CDMO #CriticalCare #MergersAndAcquisitions #StockMarketIndia