Mumbai, Nov 3 (IANS) Torrent Pharmaceuticals has entered into a definitive binding agreement with Unichem Laboratories to acquire its branded business in India and Nepal for Rs 3,600 crore, following the company's Board of Directors' approval, a regulatory filing said here on Friday.
Unichem's India business comprises of a portfolio of more than 120 brands in India and Nepal, with a manufacturing plant at Sikkim catering to these markets, the filing with the BSE said.
Torrent will fund the acquisition through a mix of internal accruals and bank borrowings.
"The deal will enable the organisation to deliver superior results in areas of innovative research, new chemical and biological entities and move into next orbit of growth," said Prakash Modi, Chairman, Unichem Laboratories.
The transaction is subject to customary conditions precedent, applicable regulatory approvals including Unichem's shareholders approval. The transaction in expected to close by end of 2017, the statement added.
"Unichem will continue to have greater focus on international business comprising of manufacturing, selling and marketing of fixed dosage formulation and API. It will also continue to build a sustainable revenue stream by investing in research and development to develop its future product pipeline," the statement said.
This will be Torrent's fifth acquisition in India after acquiring the selected brands of Elder and Novartis, as well as manufacturing plants from ZygPharma and Glochem Industries in the last four years.
The acquisition will help Torrent to consolidate its market share in terms of sales which will increase from current 2.4 per cent to 3.4 per cent in the Indian pharma market.
The statement said the acquisition will add a brand of Rs 200 crore and three brands of more than Rs 50 crore, to its existing portfolio. The top brands include, Losar, Unienzyme, Ampoxin, Telsar and Vizylac.
Approximately 3,000 plus employees will be added to Torrent's existing employee pool. Also the distribution reach will enhance by the addition of 2,000 stockists in the country.
The statement said this transaction will open the doors for Torrent to enter into the OTC segment with the brand 'Unienzyme' and the company will be a dominant player in the digestive enzyme market.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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