Torrent Pharma Rises to 5th Spot After JB Chemicals Merger

Torrent Pharmaceuticals has become the fifth largest pharmaceuticals company in India by domestic market share when it purchased a controlling stake in JB Chemicals & Pharmaceuticals.

This deal is one of the largest mergers in India's pharmaceuticals industry, at about 25,689 crore. Torrent acquired 46.39% stake from private equity KKR and has indicated an open offer for another 26% stake from the remaining JB Chemicals and another 2.8% from JB's employee trust, demonstrating intent to wholly integrate JB Chemicals into its business.

The combined entity's total consolidated revenue will surpass ?15,000 crore, and put Torrent ahead of its leading rivals in prescription volume and therapeutic coverage.

The acquisition yields many synergies, particularly in chronic areas such as cardiology and gastroenterology, and increases Torrent's percentage market-share in branded generics, and solidifies its international presence including Russia, South Africa and Latin America.

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Torrent's position as the fifth largest company is based on its increased domestic market share of roughly 4.6%, whereas it was in seventh place prior to consolidation. In terms of prescription volumes, the combined entity ranks fourth nationally.  The company will continue to employ JB Chemicals' executives and personnel to provide leadership continuity and to provide an easier transition into the business.