JB Chemicals & Pharmaceuticals Ltd on December 19 said 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.
This agreement will be for $116 million (Rs 964 crore), excluding applicable taxes, stamp duty and working capital, for the Trademarks License Agreement to Novartis. As per IQVIA, MAT September 2023 data, sales for these brands stood at Rs 207.8 crore.
Ophthalmology is one of the fastest growing therapies in the Indian Pharma market and this deal will catapult JB Chemicals & Pharma to the leading players in the ophthalmology segment, the company said in an exchange filing on December 19.
The Board additionally approved the execution of the Promotion and Distribution Agreement with Novartis Healthcare Private Limited for the portfolio of select ophthalmology brands for a period of three years starting December 2023. This agreement is for a consideration of Rs 125 crore.
Overall, the ophthalmology space is a structurally attractive market with major players clocking 10 percent+ value growth, on structural tailwinds like higher cataract surgeries driven by increased infrastructure and rising affordability, growth of 50+ population and significant under-penetration, according to a press statement by JB Chemicals.
The brands enjoy strong recall with doctors with perception of better quality as compared to competition, the press statement added.
JB Chemicals had made important acquisitions earlier in 2023 in the cardiac care and probiotics segment. The company reported a 35 percent rise in net profit to Rs 150.5 crore in the July-September quarter of FY 24.
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