Torrent to buy Unichem for around 3500 crore
has finally found a suitable buyer for its domestic formulations business in Torrent Pharma for a total consideration of ` 3,500 crore approx.
This deal is among the largest transactions in the domestic pharmaceutical landscape and will make Torrent among the top five drug firms in the domestic market. The deal is expected to close by the end of this calendar year. In India this is Torrent’s fifth acquisition after acquiring brands from Elder and Novartis, manufacturing plants from Zyg Pharma and Glochem Industries over the last five years.
Unichem’s domestic portfolio especially its Losar brand of cardiovascular drugs, is believed to be of great interest to the acquirers. “The transition is a strategic fit for Torrent and will strengthen its position in key segments of cardiology, diabetology, gastro- intestinals and CNS therapies. It is also expected to realise cost and revenue synergies in Torrent’s branded business in India,” said Samir Mehta, Torrent Pharma Executive chairman.
Prakash Mody, Chairman of Unichem said, “The deal will enable the organization to deliver superior results in areas of innovative research, new chemical and biological entities. Unichem will continue to have a greater focus on international business, comprising manufacturing, selling and marketing of fixed dosage formulation and building a sustainable revenue stream by investing in R&D to develop its future product pipeline.”