Mankind Pharma acquires Panacea Biotec's domestic formulation brands for India and Nepal
Panacea Biotec and its wholly-owned subsidiary Panacea Biotec Pharma (PBPL) have entered into definitive agreements for sale of pharmaceutical formulations brands of PBPL for India and Nepal, to Mankind Pharma.
The sale is being for a total consideration of Rs 1,872 crore. Mankind Pharma is India's 4th largest pharmaceutical company and operates in 34 overseas destinations.
The consolidated revenue of Panacea Biotec is Rs 634.78 crore and the domestic formulations brands being sold have reported revenue from operations of approximately Rs 132 crore for H1 FY2021-22 which is approximately 42% of Panacea Biotec's consolidated revenue for H1 FY2021-22. As part of this arrangement, Mankind Pharma has agreed to retain Panacea Biotec's well-trained sales and marketing team engaged in this business.
Dr. Rajesh Jain, managing director of Panacea Biotec, said: The sale of domestic formulation brand portfolio is in line with the company's strategic plan to become debt free and focus on exports of Pharmaceutical formulations in US and other international markets besides the vaccine business in global markets. The divestment will ensure adequate liquidity for these businesses, drive investments in products under development and expanding capacities for key vaccine projects to drive future growth in a sustainable manner.
Panacea Biotec is a biotechnology company that focuses on discovery, development, and commercialisation of prescription medicines primarily, focusing on vaccines, diabetes, transplant, gastroenterology, and oncology.
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The company reported a consolidated net loss of Rs 49.20 crore in the quarter ended December 2021 as against net loss of Rs 40.06 crore during the previous quarter ended December 2020. Sales rose 9.96% YoY to Rs 155.88 crore in Q3 FY22.
The scrip shed 0.21% to end at Rs 189.05 on Monday. The domestic stock market will remain shut today, 1 March 2022, on account of Mahashivratri.
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First Published: Mar 01 2022 | 1:51 PM IST