JB Chemicals and Pharmaceuticals, which is financed by KKR, said that it had acquired four pediatric brands from Dr Reddy’s Laboratories – Z&D, Pedicloryl, Pecef, and Ezinapi. Without factoring in working capital or taxes, the acquisition cost is Rs 98.3 crore in cash. The acquisition will be funded primarily through long-term debt.
Recently, JB Chemicals & Pharmaceuticals stated that its board had approved the proposal for acquiring some of Dr Reddy’s pediatric brands for approximately Rs 98 crore. The board approved JB Pharma’s proposal for acquiring and selling the products across India. It is expected that the transition and integration of all the brands will be completed in the coming few weeks. Each of the four brands possesses a considerable share in its individual space.
The acquirement and its benefits
All the four pediatric brands from Dr Reddy’s are part of a market projected at Rs 1,800 crore. JB Pharma’s CEO Nikhil Chopra said to the financial press that the acquired brands hold crucial potential for growth and strengthening JB Pharma’s already significant presence in the pediatric field, bringing synergies to its current portfolio, geographical presence, and specialty depth.
Z&D zinc supplements are used to increase immunity. In hospitals, Pedicloryl oral solution is used to treat idiopathic pain in children. Both bacterial infections and respiratory tract infections in children are treated by Pecef. Infant diaper rashes can be treated with Ezinapi cream as an emollient.
Marketing across India
JM Pharmaceuticals is going to take over the manufacture, distribution and marketing of the four acquired brands across India. To the financial press, Nikhil Chopra added that this acquisition will help leverage the on-the-ground strength of JB Pharma’s field force and expand its pediatric offering by including respiratory infection and gut health products.
As per reports, JB Pharma is searching for other acquisitions in the Indian market. The company also acquired several brands from Sanzyme in the reproductive and probiotic segments in January for Rs 628 crore.
JB Chemicals & Pharmaceuticals is one of the leading players when it comes to the hypertension segment in India. Its presence there is one of the reasons behind its massive revenue and it has two other home markets as well – South Africa and Russia.