Encube Ethicals on Friday said it has agreed to buy popular topical anti-microbial brand Soframycin and other brands from French drugmaker Sanofi for India and Sri Lanka markets for Rs 125 crore.
Along with Soframycin, Encube will also acquire other legacy associated brands such as Sofradex (antibacterial cream), Sofracort (antibacterial eye and ear drops), Soframycin-Tulle (antibacterial cream) for India and Sri Lanka markets.
Soframycin skin cream has a legacy of more than 50 years in India with a vast distribution network and strong brand recall. Soframycin and its associate brands acquired by Encube represented 2.6% or Rs 60 crore of the total sales of Sanofi India’s sales in the year 2020.
In February Sanofi India Board, following a review of its business operations, proposed to sell some of its old brands along with their trademarks, which are owned by Sanofi Group. These include brands Soframycin and Sofradex, which are manufactured through a third-party arrangement and distributed by the company.
Encube, a leading manufacturer of prescription and over-the-counter (OTC) skincare products globally, will take the first step towards addressing the Indian market with its own labelled products. Encube, which has been contract manufacturing the Soframycin skin cream for over 20 years for Sanofi, said it will vertically integrate the brand building a front-end presence in India.
“Encube’s focus of 23+ years in skincare research and manufacturing will be leveraged to make a house of skincare brands, starting with the deep-rooted legacy of Soframycin,” said Mehul Shah, founder and managing director of Encube.
Rajaram Narayanan, managing director of Sanofi India said the company regularly assesses the best ways in which to serve patients.
“Accordingly, this decision has been taken to sell the brands to Encube, keeping in mind our strategic priorities and long-term road map,” Narayanan said.
The transaction is expected to close within the next 3 months. Wadia Ghandy & Co. served as legal advisors to Encube on the transaction.