Panacea Biotec Pharma to sell its domestic formulations business to Mankind Pharma

Panacea Biotec Pharma Limited, a subsidiary of Panacea Biotec Limited, has signed an agreement with Mankind Pharma to sell its domestic formulations business for a transaction value of ₹1,908 crore.

Panacea Biotec holds the manufacturing license for the Russian Covid-19 vaccine Sputnik V.

Pursuant to a regulatory filing on Tuesday, Panacea Biotec Pharma Limited advised that the Board of Directors has approved the sale of its domestic business assets constituting its pharmaceutical formulation brands in India and Nepal, including trademarks, rights to author and other intellectual property of PBPL to mankind. Phanna Limited for a transaction value of ₹1,908 crore excluding GST.

The companies had entered into the binding term sheet on January 31, 2022. Under the agreement, the parties are working to execute the asset purchase agreement for the transaction no later than February 27, 2022, says the press release.

The transaction is expected to be finalized during the current fiscal year.

According to the exchange disclosure, PBPL’s domestic business generated revenue of ₹219.85 crore for the last fiscal year. This represents 63.75% of PBPL’s revenue and approximately 35.19% of parent company Panacea Biotec Limited’s consolidated revenue.

Notably, Panacea Biotec is one of six companies that have entered into partnerships with the Russian Direct Investment Fund (RDIF), for the Covid-19 vaccine Sputnik V.

Shares of Panacea Biotec gained 4.99% to ₹251.25 on BSE Tuesday.

Published on

February 01, 2022

About Margie Peters

Check Also

Business news live today: latest economic news, market news, economic and financial news