JB Chemicals gets board approval to acquire Dr Reddy’s 4 brands

JB Chemicals & Pharmaceuticals said Thursday that its board of directors has approved a proposal to acquire four pediatric brands from Dr. Reddy’s Laboratories for approximately Rs 98 crore.

The drug manufacturer said in a regulatory filing that the company’s board of directors at its June 29 meeting considered and approved the acquisition of a range of brands, for use in sales within India, from Dr. Reddy’s laboratories.

She added that the company had signed an agreement with Dr. Reddy Laboratories to acquire four of its brands – Z&D, Pedicloryl, Pecef and Ezinapi – for the India market.

All four brands are focused on the pediatric sector in the country with a total covered market size of Rs 1,800 crore as per IQVIA data, JB Chemicals & Pharmaceuticals said.

It added that the combined sales of these brands amounted to around Rs 33 crore for the 2021-22 financial year.

The drug company said, that the acquisition, which will be financed mainly through long-term debt, will be completed in the next few working days.

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