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Ophthalmology is one of the fastest growing therapies in the Indian pharma market and the said deal will catapult JB Pharma to among the leading players in the ophthalmology segment. JB Pharma shall offer employment to the impacted associates working on these ophthalmology brands
Under the trademarks license agreement, total consideration is $116 million (Rs 964 crore) (excluding applicable taxes, stamp duty and working capital).
The said agreement will be completed by January 2027 and the deal is proposed to be funded primarily through internal accruals.
Meanwhile, the board has also approved the execution of the promotion and distribution agreement with Novartis Healthcare for the above mentioned portfolio of select ophthalmology brands for a period of three years starting December 2023.
The cost of the acquisition stood at Rs 125 crore (excluding applicable taxes, stamp duty and working capital) under the promotion and distribution agreement. The agreement will be completed by December 2023 or January 2024.
As per IQVIA, MAT September, 2023 data, sales for these brands were at Rs 207.8 crore.
J B Chemicals & Pharmaceuticals is engaged in the business of manufacturing and marketing of diverse range of pharmaceutical formulations, herbal remedies and Active Pharmaceutical Ingredients.
The company's consolidated net profit jumped 35.6% to Rs 150.59 crore on 8.9% increase in net sales to Rs 881.74 crore in Q2 FY24 over Q2 FY23.
The scrip shed 0.41% to Rs 1,466.00 on the BSE.
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