INDIA – Torrent Pharmaceuticals, based in Ahmedabad, announced that it has reached an agreement with Dr Reddy’s Laboratories to acquire four of its brands: ‘Styptovit-E,’ ‘Finast,’ ‘Finast-T,’ and ‘Dynapress.’
According to a regulatory filing by the pharma major to the stock exchanges, Styptovit-E, a gynecology product with an estimated market size of around Rs. 500 crores (US$64.4 million), will further strengthen Torrent’s presence in the therapy.
The acquisition of Finast, Finast-T and Dynapress, which are used in the treatment of Benign Prostatic Hyperplasia (BPH), will strengthen Torrent’s presence in gynecology and urology therapy.
Torrent Pharma will take over the manufacturing, marketing, and distribution of these brands in India, according to the terms of the definitive agreement.
The brands’ complete integration and transition are expected to be completed by June 2022.
The Torrent Group’s flagship company, Torrent Pharma, has an annual revenue of more than 8,500 crores (US$1.1 billion).
Torrents Pharma ranks eighth in the Indian Pharmaceuticals Market and is in the top five therapeutics segments of Cardiovascular (CV), Gastro Intestinal (GI), Central Nervous System (CNS), and Vitamins Minerals Nutritionals (VMN).
Torrent Pharma reported a net loss of 118 crore (US$15.2 million) for the January-March quarter of 2022, owing to headwinds in its EU business and the discontinuation of its liquids business in the United States.
In the same quarter last year, the company earned 324 crore (US$41.7 million) in profit after tax. Its revenue increased 10% year on year to 2,131 crore (US$274.5 million), owing to growth in branded generic markets.
The board of directors of the company declared a final dividend of ₹23 (US$0.30) (460 percent) per share of 5 each, plus a special dividend of ₹15 (US$0.19) per share.
It also authorized the issuance of bonus shares in the ratio of one for every fully paid up equity share held as of the record date.
As a result of the bonus issue, the total paid-up share capital will increase from Rs. 84.62 crore (US$10.9 million) to Rs. 169.22 crore (US$21.8 million).
Furthermore, the board approved the issuance of equity shares, including convertible bonds/debentures, via qualified institutional placement (QIP) and/or depository receipts or any other mode for an amount up to 5,000 crore (US$644 million), subject to approval at the company’s upcoming annual general meeting.
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