Drug firm Marksans Pharma has entered into a Business Transfer Agreement with Tevapharm India to acquire its business relating to the manufacture and supply of bulk pharmaceutical formulations in Plot No. Al, Phase l-A, Verna Industrial Estate, Verna, Goa 403722, India, as a going concern on a slump sale basis.

Marksans has agreed to retain the site employees with existing terms of employment. The transaction is in cash consideration and is expected to be finalized by April 1, 2023, subject to the usual closing conditions. Teva's affiliate Watson Pharma Private Limited will continue to own and operate its other manufacturing site at Verna Industrial Estate, Verna Salcette, Goa, India.

Marksans will continue to supply Teva's affiliates for certain products until the end of FY23 as part of the agreement, which can be extended further with mutual agreement.

Commenting on the transaction, Mark Saldanha, Promoter and Managing Director of Marksans Pharma said, "l am excited to share that the acquisition has potential to significantly expand our manufacturing capability and accelerate our core growth strategy. It will supplement our innovative product portfolio, as we plan to begin manufacturing of creams, ointments, etc. in India. It is also a testament to our commitment to invest in product innovation, expand capacities, and drive market share gains. We are confident that this acquisition will lead to transformational growth journey unlocking further value for our shareholders."

Through the acquisition, the company plans to double the existing Indian capacity from 8bn units per annum currently. Marksans plans to manufacture tablets, hard and soft gel capsules, ointments, gummies, creams, from the new capacity. It is a scalable capacity to manufacture oral solid dosage forms. The new capacity will be an addition to the three existing manufacturing sites in Southport (UK), Farmingdale (US) and Goa (India). The manufacturing site is spread across 47,597 square meters and has approvals to manufacture products from EU, Health Canada & Japanese Health Authority.

Torreya acted as the exclusive financial advisor to Marksans Pharma Limited on their acquisition.