Tor­rent to buy Unichem for around 3500 crore

Chemical Industry Digest - - News & Views -

Unichem

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.”

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