Ahmedabad-based Torrent Pharmaceuticals has signed an agreement with Dr. Reddy's Laboratories to acquire four of its brands Styptovit-E, Finast, Finast-T, and Dynapress. As per the deal, Torrent will manufacture, market, and distribute these brands in India.
“The complete integration and transition of the brands are expected to be completed by June 2022,” Torrent Pharma said in an exchange filing on Thursday.
As per the filing, Styptovit-E, a gynecology product with estimated market size of around ₹500 crores (AIOCD data set), will further strengthen Torrent’s presence in the therapy. Besides, the acquisition of Finast, Finast-T, and Dynapress, which are used in the treatment of Benign Prostatic Hyperplasia (BPH), will aid in Torrent's presence in the Urology therapy.
Torrent Pharma, with annual revenue of more than ₹8,500 crores, is the flagship company of the Torrent Group. It is ranked eighth in the Indian Pharmaceuticals Market and is amongst the top 5 in the therapeutics segments of Cardiovascular (CV), Gastro Intestinal (GI),Central Nervous System (CNS), and Vitamins Minerals Nutritionals (VMN).
For the January-March quarter of 2022, Torrent Pharma reported a net loss of ₹118 crore due to headwinds faced by its EU business and discontinuation of its liquids business in the U.S. The company had posted a profit after tax of ₹324 crore in the corresponding quarter of last year. Its revenue rose 10% YoY to ₹2,131 crore, supported by growth in branded generic markets.
The company’s board has declared a final dividend of ₹23 (460%) per share of ₹5 each including a special dividend of ₹15 per share. It also approved the issue of bonus shares in the ratio of 1: 1 for each fully paid up equity share held as on record date fixed for the purpose. Consequent to the bonus issue, the total paid up share capital will be Rs. 169.22 crore from the existing Rs. 84.62 crore.
Besides, the board also gave nod to issuance of equity shares including convertible bonds/ debentures through qualified institutional placement (QIP) and / or depository receipts or any other modes for an amount up to ₹5,000 crore, subject to approval in the upcoming annual general meeting of the company.