Panacea Biotec’s Board of Directors as well as the Board of its wholly-owned subsidiary viz. Panacea Biotec Pharma Ltd. (PBPL) approved sale of Domestic Formulations Brands of PBPL, for India and Nepal, to Mankind Pharma Limited, India’s 4th largest pharmaceutical company., for INR 1872 Crore. The parties have today entered into definitive agreements in this regard.
The consolidated revenue of PANACEA BIOTEC is Rs. 634.78 Crore and the domestic formulations brands being sold have reported revenue from operations of ~INR 132 crore for H1FY2021-22 which is ~42% of Panacea Biotec’s consolidated revenue for H1FY2021-22. As part of this arrangement, Mankind Pharma Ltd., has agreed to retain Panacea Biotec’s well-trained sales and marketing team engaged in this business.
Dr. Rajesh Jain, Managing Director, for Panacea Biotec, said: “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. The divestment will ensure adequate liquidity for these businesses, drive investments in products under development and expanding capacities for key vaccine projects to drive future growth in a sustainable manner.”
Highly elated with the deal, Mr. Ramesh Juneja, Chairman of Mankind Pharma Ltd., said, “This deal is the celebration of a long harbored relationship, trust and friendship that we share with Dr. Rajesh Jain which helped in closing the deal within 30-35 days which otherwise would have taken a long time.”
On the occasion, Mr. Rajeev Juneja, Managing Director and Vice Chairman, Mankind Pharma Ltd., said “The transaction marks a very historical event which brings about the perfect confluence of both the organization to complement each other. Panacea has created a niche in chronic and transplant business and their products are inherently backed up with thorough R&D and are supported by highly complex and distinctive technology. Through this acquisition Mankind Pharma will be able to explore new therapeutic areas and create visibility in lifestyle, oncology and transplant business. I would really like to thank Mr. Sanjiv Kaul of Chrys Capital who played a very pivotal role in helping us enter this historic deal.”