Torrent Pharmaceuticals has entered into a definitive binding agreement with Unichem Laboratories to acquire its branded business of India and Nepal for a consideration of Rs 3,600 crore, pursuant to the approval from the Board of Directors of the company. The transaction is ongoing concern basis by way of Slump sale. Torrent will fund the acquisition through a mix of internal accruals and bank borrowings.
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.
This transaction will open 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 and will be amongst the top three players in the segments of Anti-Hypertensive, Anti-Depressants and Tranquilizers.
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.
| Company Name | CMP |
|---|---|
| Sun Pharma Inds. | 1824.10 |
| Dr. Reddys Lab | 1287.95 |
| Cipla | 1334.85 |
| Zydus Lifesciences | 901.65 |
| Lupin | 2350.95 |
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