Marksans Pharma jumped 8.15% to Rs 50.45 after the drug firm said it has inked a pact with Tevapharm India to acquire its Goa-based pharmaceutical formulations business.
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, as a going concern on a slump sale basis.Marksans will retain the site employees with existing terms of employment. The transaction is in cash consideration and is expected to be finalized by 1 April 2023, subject to the usual closing conditions.
Through the acquisition, the company plans to double the existing Indian capacity from 8 billion units per annum currently. It 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.
Teva's affiliate Watson Pharma will continue to own and operate its other manufacturing site at Verna Industrial Estate, Verna Salcette, Goa, India.
Marksans will continue supplying certain products to Teva's affiliates until the end of FY23 as part of the agreement, which can be extended further with mutual agreement.
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Marksans Pharma is engaged in research, manufacturing & marketing of generic pharmaceutical formulation in the global markets. The company is marketing these products globally.
The company's consolidated net profit slipped 3.9% to Rs 60.2 crore despite of 24.3% rise in revenue from operations to Rs 433.8 crore in Q1 FY23 over Q1 FY22.
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