Torrent to buy Unichem brand biz in Nepal & India
Under the agreement, Torrent will pay Rs.3600 crores ($558m) to Unichem for approximately 120 diabetes, cardiology, gastro-intestinal and central nervous system (CNS) drugs, as well as a manufacturing facility in Sikkim, India.
More than 3,000 employees from Unichem’s branded business will transfer to Torrent.
“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,” said Torrent CEO Samir Mehta.
The agreement will see Torrent add diabetes treatment Losar and antibiotic Ampoxin to its product list, as well as its first over the counter drug, Unienzyme, designed to aid digestion and lower cholesterol levels.
“It [the acquisition] is also expected to realise cost and revenue synergies in Torrent’s branded business in India,” said Mehta.
In the last four years, Torrent has acquired brands from Elder and Novartis, and manufacturing facilities from ZygPharma and Glochem Industries.
APIs and biologics
Unichem said it would focus on manufacturing, selling and marketing fixed dosage formulations and active pharmaceutical ingredients (APIs), as well as investments in research and development (R&D).
“The deal will enable the organisation to deliver superior results in areas of innovative research, new chemical and biological entities and move into the next orbit of growth,” said Unichem chairman Prakash Modi.
The transaction is subject to approval, but expected to close by the end of the year.
