Torrent Pharma to acquire Unichem for Rs 3,600 cr

Torrent Pharmaceuticals Friday said it will acquire branded business of Unichem Laboratories in India and Nepal for Rs 3,600 crore in one of the major consolidations in the domestic pharma sector. This is the company's fifth acquisition in India in the last four years after acquiring selected brands of Elder and Novartis, catapulting Torrent Pharma to the list of top pharma firms in India. As part of the acquisition, Torrent will take over Unichem's India and Nepal business (India business) comprising a portfolio of over 120 brands, a manufacturing plant at Sikkim catering to these markets and over 3,000 employees, the company said in a statement.

Commenting on the development, Torrent Pharmaceuticals Chairman Samir Mehta said: "The transaction is a strategic fit for Torrent and will strengthen its position in the 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, he added. Torrent Pharma said the acquisition will open doors for it to enter into the OTC segment with 'Unienzyme' and help it become a dominant player in the digestive enzyme market. Besides, it will also be among the top three players

in anti-hypertensive, antidepressants and tranquilisers, the company added.

Unichem Laboratories Chairman Prakash Modi said, "The deal will enable the organisation to deliver superior results in areas of innovative research, new chemical and biological entities and move into next the orbit of growth." The company "will fund the acquisition through a mix of internal accruals and bank borrowings," Torrent Pharmaceuticals said. "This will be Torrent's fifth acquisition in India after acquiring the selected brands of Elder and Novartis, as well as manufacturing plants from ZygPharma and Glochem Industries Ltd in the last four years," the company said.