Mankind Pharma to buy domestic business of Panacea Biotec Pharma. Both companies entered into an agreement to buy the domestic formulations business of Panacea Biotec Pharma, a subsidiary of Sputnik V maker Panacea Biotec for Rs 1,908 crore.
Board of Directors of Panace Biotec decided in board meeting on February 01, 2022, that their wholly-owned subsidiary, Panacea Biotec Pharma Limited's domestic business assets constituting its pharmaceutical formulations brands in India and Nepal including related trademarks, copyrights and such other intellectual property as may be agreed, inventories, etc. to acquired by Mankind Pharma Limited at transaction value of Rs.1,908 Crore plus GST.
The domestic business assets generated a turnover of Rs 219.85 crore in the last financial year, which was 63.75 percent of the total revenue of Panacea Biotec Pharma, and around 35 percent of the consolidated turnover of Panacea Biotec. The stocks of Panacea Biotec were up by 5 percent at the end of days trade.
Panacea Biotec Pharma and Mankind Pharma have entered into the binding term sheet on January 31, 2022. Under the Binding Term Sheet, the parties are endeavouring to execute the asset purchase agreement and other definitive documents for the Transaction on or prior to February 27, 2022. The Transaction is expected to be completed in the current financial year.
Panacea Biotec or the parent company had transferred its pharma formulations business, formulations facility at Baddi, related R&D and natural products extraction activities at Lalru to its wholly owned subsidiary Panacea Biotec Pharma in 2020.
Serum Institute of India CEO Adar Poonawalla holds an 8.59 percent stake in Panacea Biotec, which makes vaccines and pharmaceutical products.
