Nov 4: Ahmedabad-based Torrent Pharmaceuticals Ltd announced that it has entered into a definitive binding agreement with Unichem Laboratories Ltd to acquire its branded business of India and Nepal for a consideration of Rs.3600 crore.
Unichem’s India business comprises of a portfolio of more than 120 brands in India and Nepal, manufacturing plant at Sikkim catering to these markets and all the employees engaged in the said business.
Torrent will fund the acquisition through a mix of internal accruals and bank borrowings.
The deal will enable Unichem to focus more on its international business, including finished formulations, active pharmaceutical ingredients, contract manufacturing and contract research.
This is Torrent Pharmaceuticals’s fifth acquisition in India. It had acquired selected brands of Elder Pharmaceuticals Ltd and Novartis India Ltd, as well as manufacturing plants from Zyg Pharma Pvt. Ltd and Glochem Industries Ltd.in the last four years.
With this deal, Torrent will enter the list of top pharma firms in the Indian Pharma market (IPM) and will be ranked No 5 in the IMS. The acquisition helps Torrent to consolidate its market share in terms of sales which will increase from current 2.4% to 3.4% in the IPM.
“The transaction is a strategic fit for Torrent and will strengthen its position in the key segments of Cardiology, Diabetology, Gastro-Intestinals and CNS therapies. It is also expected to realize cost and revenue synergies in Torrent’s branded business in India” said Samir Mehta, Chairman Torrent Pharmaceuticals Limited.
According to Dr. Prakash Modi, Chairman of Unichem Laboratories Limited, “The deal will enable the organization to deliver superior results in areas of innovative research, new chemical and biological entities and move into next the orbit of growth. Torrent, we believe is the right company as they have the expertise and right presence in the key therapies to take forward these established brands to newer heights”.
Torrent also added that the deal will add 3,000-odd employees and 2,000 stockists. It will also allow the company an entry into the over-the-counter (OTC) segment with the Unienzyme brand. Torrent will become among the top three players in anti-hypertensives, anti-depressants and tranquilisers.