This pharma company to acquire a franchise from Glenmark Pharmaceuticals for Rs 313.7 crore

Shares of the company surged more than 1.80 per cent.

JB Chemicals & Pharmaceuticals has entered into an agreement with Glenmark Pharmaceuticals to acquire the Razel (Rosuvastatin) franchise for the India and Nepal region. The transaction is expected to be closed within the next two weeks subject to customary closing formalities. The company sees growth potential from the acquired portfolio as it is synergistic with its cardiac segment and will help it leverage its Go to Market Model. Further, the products provide good operating leverage and are margin accretive, given their attractive margin profile. The cost of acquisition is Rs 313.7 crore (excluding working capital and taxes).

JB Pharma is one of the fastest-growing pharmaceutical companies in India and a leading player in hypertension and the heart failure segment. Besides its strong India presence, which accounts for the majority of its revenue, its other two home markets are Russia and South Africa. The company exports its finished formulations to over 40 countries including the USA.

Today, the stock opened at Rs 2055.00, with a high and low of Rs 2071.90 and Rs 2036.85. The stock previously closed at Rs 2024.45. It is currently trading at Rs 2060.50, up by 1.78 per cent.  

In the last six months, the shares of the company have given 36.65 per cent returns and on a YTD basis, the stock has given 17.73 per cent returns. The stock has a 52-week high of Rs 2149.90 and a 52-week low of Rs 1339.00.