Glenmark Pharmaceuticals Ltd on December 14 announced that it has entered into a pact with JB Chemicals & Pharmaceuticals Ltd to divest its cardiac brand, Razel (Rosuvastatin and combinations), in India and Nepal.
The brand would be divested for a "considerable amount of Rs 313.7 crore", as per the agreement inked with JB Chemicals, Glenmark Pharma informed the stock exchanges.
The transaction is expected to be closed by the end of this calendar year, subject to customary closing formalities, it added.
Notably, Razel and its combinations are indicated for the management of dyslipidemia.
"This divestment is in line with Glenmark’s strategy of focusing on other sub‐categories of the cardio‐vascular segment," the regulatory filing stated.
Going forward, the company will continue to further consolidate its position in its core therapeutic areas of cardio‐metabolic, respiratory, dermatology, and oncology, it further noted.
Glenmark Pharma had, last month, reported a consolidated revenue of Rs 3,375 crore for the quarter ending September 2022. The revenue was higher as compared to Rs 3,147 crore clocked in the year-ago period.
The Mumbai-headquartered drugmaker had posted a profit after tax of Rs 279 crore for Q2FY23, which was marginally up as against Rs 275 crore reported in the second quarter of the last fiscal.
With this acquisition, JB Pharma said it will complete its cardiac portfolio making it a leader in this segment, as Razel ranks among the top 10 brands in the Rousvastatin molecule category in the country.
“We are glad to announce the acquisition of the Razel (Rousvastatin & combinations) franchise, 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,” Nikhil Chopra, CEO and Whole Time Director, JB Pharma said.
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.
On the day Glenmark announced its pact with JB Chemicals for divestment of the Razel brand, its shares settled at Rs 439.40 at the BSE. The closing price was 1.37 percent higher than the previous day's close.
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