INDIA – Mankind Pharma, India’s fourth largest pharma company announced that it has reached an agreement with Dr Reddy’s Laboratories to acquire two brands – Combihale and Daffy for an undisclosed amount.
Combihale, a drug used to treat asthma and chronic obstructive pulmonary disease (COPD), has a Rs 900 crore (US$119.9 million) category market that is growing at a 14 percent annual rate as per IQVIA.
Daffy, a soap-free moisturizing bar for infants, competes in a Rs 1000 crore (US$133. 25 million) market that is growing at an 18% annual rate according to IQVIA.
The acquisition of Combihale is expected to strengthen Mankind’s presence in the inhalation respiratory market segment, according to the company.
Mankind Pharma already has a portfolio of pharmaceutical products in the Respiratory and Dermatology segments, and the acquisition of these brands fits well with the company’s strategy to expand its presence in these therapy segments, according to the Delhi-based company.
Commenting on the development, Atish Majumdar, president at Mankind Pharma said, “We believe these brands have adequate potential to grow in the Indian market and the best part of the acquisition is that both these brands perfectly fit in our portfolio, and provides us an opportunity to grow and build the respiratory and dermatology business further.”
Mankind Pharma will take over the manufacturing, marketing, and distribution of both products in India, according to the terms of the definitive agreement signed between the companies.
The entire brand integration and transition is expected to be completed by March 2022.
The acquisition of these brands fits well with the company’s strategy to expand its presence in dermatology and respiratory therapy segments.
This new development comes in the heels of Mankind’s recent acquisition of Panacea Biotec’s domestic formulations business for Rs1908 crore (US$254.2 million).
According to reports, Panacea Biotec Pharma was struggling to repay debt and Piramal Enterprises and India Resurgence Fund (IndiaRF) had extended the repayment date last year.
In the last financial year, the domestic business assets generated a turnover of RS 219.85 crore, which is more than 63.75% of Panacea Biotec’s revenue, and around 35% of the consolidated turnover of Panacea Biotec.
As per IQVIA, with the Mankind acquisition of Panacea Biotec, Mankind Pharma reaches Rs 8000 crore (US$1.066 billion).
Though the top 5 therapies of Mankind Pharma remain the same, the acquisition provides an entry of Mankind Pharma in the vaccines and antineoplastic segments.
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