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JB Chemicals & Pharmaceuticals has acquired around 15 ophthalmology drugs from the Swiss multinational giant Novartis for Rs 964 crore or $116 million. The acquisition will take effect from January 2027.
Meanwhile, leading up to this date, JB Chemicals will pay Rs 125 crore to Novartis to license the same drug portfolio for the Indian market. The company said on Tuesday that its board has approved the execution of a Trademark License Agreement for a portfolio of select ophthalmology brands from Novartis Innovative Therapies AG from January 2027.
JB Chemicals and Pharmaceuticals shall offer employment to the impacted associates working on this portfolio, it said today. JB Chemicals shares ended on BSE at Rs 1,466 apiece, down marginally.
According to IQVIA, MAT September 2023 data, sales for these brands stood at Rs 207.8 crore. The acquired Novartis' portfolio includes anti-infective, anti-allergy, and glaucoma drugs, with eight out of ten of these drugs growing at a 10-20 per cent three-year compound annual growth rate (CAGR). None of the drugs are under the National List of Essential Medicines (NLEM).
The Ophthalmology segment registered a three-year CAGR of 15 per cent versus a 9 per cent growth of the Indian Pharma Market (IPM). It is the third fastest-growing therapy in the domestic market. The ophthalmology market size is around Rs 4,300 crore, and now JB Chemicals and Pharmaceuticals will rank fourth in this therapy area.
The company said in an investor presentation that an estimated 6 million blind people are in the country in the over-50 age group, and another 44 million people have visual impairment. Cataract surgeries are expected to grow at 6-8 per cent year-on-year. There are over 3 million glaucoma patients, a large latent patient pool of retinopathy, macular edema, especially given the over 80 million diabetics in the country. Incidence of dry eyes, bacterial, and viral infections are also increasing with changing lifestyle (increased screen time), rising pollution levels.
Over the next three years, during the duration of the in-licensing agreement, Novartis will continue the manufacturing of the drugs, while JB Chemicals will focus on marketing and selling the products.
In the last two years, JB Chemicals bought Sanzyme's probiotic portfolio for Rs 628 crore and pediatric brands from Dr Reddy's Laboratories.
