JB Pharma Inks Rs 1,089 Cr Ophthalmology Deal with Novartis
Dec 19, 2023 13:30
JB Chemicals & Pharmaceuticals Ltd (JB Pharma) has signed an agreement with Novartis for select ophthalmology brands, worth Rs 1,089 crore. The deal includes a trade mark licence agreement and a promotion and distribution pact.
Illustration: Uttam Ghosh/Rediff.com
New Delhi, Dec 19 (PTI) JB Chemicals & Pharmaceuticals Ltd (JB Pharma)on Tuesday said it has inked a trade mark licence agreement along with promotion and distribution pact with Novartis for select ophthalmology brands entailing a total sum of Rs 1,089 crore.
The board of directors at its meeting held on December 19, 2023 approved the execution of a trade mark licence agreement with Novartis Innovative Therapies AG, which is perpetual in nature for the Indian market, for a portfolio of select ophthalmology brands which will be effective in January 2027, JB Pharma said in a regulatory filing.
The board also approved the promotion and distribution agreement with Novartis Healthcare Pvt Ltd for the same portfolio of select ophthalmology brands for the Indian market for a period of three years starting December 2023, it added.
On the financial details of the agreements, JB Pharma said it will pay USD 116 million (Rs 964 crore), excluding applicable taxes, stamp duty and working capital, for the trade marks licence agreement to Novartis Innovative Therapies AG, Switzerland.
Another Rs 125 crore, excluding applicable taxes, stamp duty and working capital, will be paid to Novartis Healthcare Pvt Ltd, India under the promotion and distribution agreement.
"JB Pharma shall offer employment to the impacted associates working on these ophthalmology brands," the filing said.
On the reasons for the acquisition, the company said,"Ophthalmology is one of the fastest growing therapies in the Indian pharma market and this deal will catapult JB Pharma to among the leading players in the ophthalmology segment."
Overall, JB Pharma said the ophthalmology market is a structurally attractive market and major players have registered over 10 per cent value growth with structural tailwinds such as higher cataract surgeries driven by increased infrastructure and rising affordability, growth of 50-plus population and significant under-penetration.
"The brands enjoy strong recall with doctors with perception of better quality as compared to competition," it said.
Citing IQVIA, MAT September, 2023 data, sales for this ophthalmology portfolio was at Rs 207.8 crore, the company said.
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