JB Pharma Acquires 4 Pediatric Brands For INR 98.3 Crore
As per the terms of definitive agreement, JB will take over the manufacturing, marketing and distribution of these brands in India.
JB Pharma has announced its third acquisition of 4 brands in the calendar year in the pediatric segment, Z&D, Pedicloryl, Pecef and Ezinapi, from Dr Reddy's Laboratories. All the four brands are in the pediatric segment with a total market size of INR 1800 crore. The combined sales as per internal estimates were INR 33 crore for FY21 to 22. The acquisition has been done for a cash consideration of INR 98.3 crore. As per the terms of definitive agreement, JB will take over the manufacturing, marketing and distribution of these brands in India. The complete integration and transition of the brands are expected to be completed in the next two weeks, as per company statement.
"This is the time to capitalize on the opportunity to expand our wings in the pediatric segment across the country because all the four brands we have required have lion's share in their respective spaces. This acquisition is in sync with our strategic blueprint and future growth aspirations for JB and we will continue to focus on evaluating opportunities for strengthening our India domestic business," said Nikhil Chopra, CEO and director, JB Pharma.
According to the statement, all the acquired four brands have their specification in their respective segments such as Z&D is used as a nutritional supplement, Pecef has a wide range of SKUs to cater to bacterial infections, Ezinapi is used as an emollient for diaper rashes in infants and Pedicloryl is used for idiopathic pain management.
"Overall, the brands acquired have significant growth potential to strengthen our already established presence in the pediatric category, which is synergistic to our current portfolio, specialty depth and geographical presence," Chopra added.
Established in 1976, JB Chemicals and Pharmaceuticals Limited, has 5 brands among the top 300 brands in the country. The company exports its finished formulations to over 30 countries including USA. It has seven state-of-the-art manufacturing facilities in India, the company claimed in a statement.