Mankind Pharma has acquired Panacea Biotec’s domestic formulation brands for India and Nepal, the pharmaceutical major said on Tuesday.
The parties entered into a definitive agreement under which Panacea Biotec’s Board of Directors as well as the board of its wholly owned subsidiary viz. Panacea Biotec Pharma Ltd. (PBPL) approved the sale of domestic formulations brands of PBPL, for India and Nepal, to Mankind Pharma Limited for Rs 1,872 crore.
The consolidated revenue of Panacea Biotech is Rs 634.78 crore. The domestic formulations brands being sold have reported revenue from operations of Rs 132 crore for H1 FY2021-22 which is around 42 per cent of the company’s consolidated revenue for H1 FY2021-22.
“The sale of Domestic Formulation Brand portfolio is in line with the Company’s strategic plan to become debt free and focus on exports of pharmaceutical formulations in US and other international markets besides the vaccine business in global markets,” said Dr Rajesh Jain, Managing Director, for Panacea Biotec.
“The divestment will ensure adequate liquidity for these businesses, drive investments in products under development and expand capacities for key vaccine projects to drive future growth in a sustainable manner,” he said.
As part of this arrangement, Mankind Pharma Ltd, has agreed to retain Panacea Biotec’s sales and marketing team engaged in this business.
“Panacea has created a niche in the chronic and transplant business and their products are inherently backed up with thorough R&D and are supported by highly complex and distinctive technology,” said Rajeev Juneja, Managing Director and Vice Chairman, Mankind Pharma Ltd.
“Through this acquisition Mankind Pharma will be able to explore new therapeutic areas and create visibility in lifestyle, oncology and transplant business,” he said.
Panacea Biotec, which makes the Sputnik V Covid-19 vaccine, has been struggling to repay a debt of Rs 750 crore to Piramal Enterprises and India Resurgence Fund (IndiaRF). It has now sold its domestic formulations business, including formulations brands in India and Nepal, related trademarks, copyrights, etc. of its subsidiary Panacea Biotec Pharma to Mankind Pharma for Rs 1,908 crore (exclusive of taxes). Meanwhile, Serum Institute of India, which owned 8.59 per cent stake in Panacea Biotec in December 2021, sold 358,000 of its equity shares on the NSE at Rs 278.15 earlier in February.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today