India Pharma Outlook Team | Tuesday, 19 December 2023
JB Chemicals & Pharmaceuticals Ltd has signed a trade mark licence deal, as well as a promotion and distribution agreement, with Novartis for select ophthalmic brands worth Rs 1,089 crore. The board of directors approved the execution of a perpetual trade mark licence agreement with Novartis Innovative Therapies AG for a portfolio of select ophthalmology brands for the Indian market at its meeting on December 19, 2023, 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, as per economic times.
Concerning the financial terms of the agreements, JB Pharma stated that it will pay USD 116 million (Rs 964 crore), excluding applicable taxes, stamp duty, and working capital, to Novartis Innovative Therapies AG, Switzerland, for the trade marks licence agreement.
Another Rs 125 crore will be paid to Novartis Healthcare Pvt Ltd, India, under the promotion and distribution agreement, excluding applicable taxes, stamp duty, and working capital.
"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 stated that the ophthalmology market is structurally attractive, with major players registering over 10% value growth due to structural tailwinds such as increased cataract surgeries driven by increased infrastructure and rising affordability, growth of the 50-plus population, and significant under-penetration.
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