Panacea Biotec’s wholly-owned subsidiary Panacea Biotec Pharma has completed the sale of its domestic formulation brands to Mankind Pharma for a total consideration of Rs 1872 crore.

The board of directors of the two companies had earlier approved the sale earlier this month.

 The consolidated revenue of Panacea Biotec is Rs 634.78 crore and the domestic formulations brands being sold have reported revenue from operations of Rs 132 crore for H1FY2021-22 which is 42% of Panacea Biotec’s consolidated revenue for H1FY2021-22. As part of this arrangement, Mankind Pharma has agreed to retain Panacea Biotec’s well-trained sales and marketing team engaged in this business. 

Dr. Rajesh Jain, Managing Director of Panacea Biotec, said: “The sale of domestic formulation brand portfolio is in line with the company’s strategic plan to become debt-free and focus on exports of pharmaceutical formulations in US and other international markets besides the vaccine business in global markets. The divestment will ensure adequate liquidity for these businesses, drive investments in products under development and expanding capacities for key vaccine projects to drive future growth in a sustainable manner.”

Ramesh Juneja, Chairman of Mankind Pharma, said, “This deal is the celebration of a long harboured relationship, trust and friendship that we share with Dr. Rajesh Jain which helped in closing the deal within 30-35 days which otherwise would have taken a long time.”

On the occasion, Rajeev Juneja, Managing Director and Vice-Chairman, Mankind Pharma said: “The transaction marks a very historical event which brings about the perfect confluence of both the organization to complement each other. Panacea has created a niche in the chronic and transplant business and their products are inherently backed up with thorough R&D and are supported by highly complex and distinctive technology. Through this acquisition, Mankind Pharma will be able to explore new therapeutic areas and create visibility in lifestyle, oncology and transplant business.”