The pharma company said that the acquisition will be funded through long term debt and internal accruals (primarily debt). The transaction is expected to be closed by the end of this calendar year, subject to customary closing formalities.

Razel and its combinations are indicated for the management of dyslipidemia. Razel ranks among the top 10 brands in the Rousvastatin molecule category in the country.

JB Pharma said that it sees growth potential from the acquired portfolio as it is synergistic with its cardiac segment and will help it leverage its Go to Market Model. Further the products provide good operating leverage and are margin accretive, given its attractive margin profile.

These brands are focused on cardiac segment in India and Nepal with a total covered market size of Rs 2,444 crore, as per IQVIA MAT October 2022 numbers.

The acquisition marks JB Pharma's entry into the statin segment which is the largest group in cardiac therapy.

Nikhil Chopra, CEO and whole time director of JB Pharma said, “We are glad to announce the acquisition of the Razel (Rousvastatin & combinations) franchise from Glenmark Pharmaceuticals, thereby marking JB's expansion into Statins, which is the largest therapeutic segment in cardiology. With this addition, we now have established strong position in statins besides being among the leaders in Hypertension and Heart failure – all the fastest growing therapeutic indications in cardiology.”

He further added, “We see good growth potential from the acquired brands. This acquisition will help us leverage our existing Go-To-Market model focussed for this segment and further strengthen our chronic portfolio.”

Glenmark Pharmaceuticals said that this divestment is in line with its strategy of focusing on other sub‐categories of the cardio‐vascular segment. Going forward, the company will continue to further consolidate its position in its core therapeutic areas of cardio‐metabolic, respiratory, dermatology, and oncology, it added.

Glenmark Pharmaceuticals is a global pharmaceutical company with a presence across specialty, generics, and OTC businesses.

JB Pharma is one of the fastest growing pharmaceutical companies in India and a leading player in the hypertension segment. Besides its strong India presence, which accounts for majority of its revenue, its other two home markets are Russia and South Africa. The company exports its finished formulations to over 40 countries including the USA. Besides supplying branded generic formulations to several countries, it is also a leader in the manufacturing of medicated lozenges.

Shares of JB Pharma rose 1.36% to Rs 2,051.95 while Glenmark Pharmaceuticals shed 0.08% to Rs 439.05 on the BSE.