Torrent Pharmaceuticals Ltd, the flagship company of the Torrent Group was incorporated in the year 1972, is one of the leading pharmaceutical companies having presence in Indian and global markets. The company is a dominant player in the therapeutic areas of cardiovascular (CV) and central nervous system (CNS) and has achieved significant presence in gastro-intestinal, diabetology, anti-infective and pain management segments. The company has their presence in 50 countries and has nine wholly owned subsidiaries in markets of Europe, United States, Latin America and Asia Pacific. The Market Share of Torrent Pharmaceutical Limited is 3% with respect to total Revenue of India Pharmaceutical Sector which is US$ 36.7 Billion for FY 16-17.

The company has the world class manufacturing facilities located at Indrad in Gujarat and Baddi in Himachal Pradesh and other locations include Sikkim Plant, Zyg pharma at Pithampur, (Indore), Dahej Plant situated in Dahej SEZ, near Bharuch, Gujarat. The company’s key areas are Formulations, API (Active pharmaceutical Ingredient), Drug Discovery, Marketing and Sales of Drugs. The Market Capitalisation of the company is Rs 21,154 Crores. The Company’s revenues are mainly from manufacture and sale of branded as well as unbranded generic pharmaceutical products.

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Figure 1: Torrent Pharma Business Segments

During the financial year 2015-16, the Company reported revenues of RS 6,687 crores, a growth of 43% compared with Rs 4,653 crores in the previous financial year.

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NOVARTIS AG

Generics Medicines and Biosimilars: Sandoz Division of Novartis AG is a global leader in generic medicines and biosimilars, offering more than 1,000 different types of high-quality, affordable products across a broad range of therapeutic areas. It pioneers new ways to help people around the world access high-quality medicines.

ABOUT SANDOZ DIVISION OF NOVARTIS

  • In 1996 Ciba-Geigy merged with Sandoz, with the pharmaceutical and agrochemical divisions of both staying together to form Novartis. Other Ciba-Geigy and Sandoz businesses were sold.
  • Sandoz is in generic drugs business and it was the first generics pharmaceutical company to receive approval for some various biosimilar products.

Novartis

  • Novartis was weighing options to divest part of its non-core brand portfolio globally.
  • Sandoz business of Novartis had two product portfolios which were available for sell:
    • Women’s Health Care (Regestrone and Pregachieve brands).
    • Anti-Infective
  • It is said that Anti-Infective is also on the block to be sold and this could also conclude shortly. Due to Anti-infective sales (including partner label and finished dosage form sales) were USD 356 million (0% cc) *, reflecting the discontinuation of low-margin products.
  • This will enable Novartis to focus on manufacturing and marketing of its higher revenue generating Biopharmaceuticals.
  • The women healthcare portfolio of Novartis in India is around Rs 75 crore. Regestrone Tablet is usually used for irregular, painful or heavy periods.

(Novartis-Interim Financial Report- Net Sales Q4-2016) *

TRANSACTION

On May 8, 2017, Torrent Pharmaceuticals Limited announced that it has acquired two of the popular brands for women healthcare- Regestrone and Pregachieve brands from global pharma player Novartis AG, Switzerland through Asset Sale Agreement. These brands are widely prescribed by gynaecologists for the management of abnormal uterine bleeding, Peri and Post-menopausal symptoms and Infertility. These two brands will form part of therapeutic segments of Torrent Pharmaceuticals Ltd., thereby increasing the product portfolio of Torrent Pharmaceuticals. The said drugs are generic drugs which come under the category of generic pharmaceutical products and it is understood that it will have market all over India as well as outside India. The transaction has been approved by CCI on the 20th April 2017.

VALUE OF THE DEAL

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