Panacea Biotech jumps ~5% on selling off Domestic Formulation Brands to Mankind Pharma

2 Mar 2022 , 01:27 PM

In its press release, Panacea Biotech Ltd. announced that the company’s Board has approved the sale of Domestic Formulations Brands of PBPL, for India and Nepal, to Mankind Pharma Limited, India’s 4th largest pharmaceutical company.

The two companies have entered into a definitive agreement for the execution of such a transaction worth Rs1872 crore.

Panacea Biotech’s consolidated revenue stood at Rs634.78 crore and the domestic formulation brands which are being sold off have had revenue of Rs132 crore for H1FY2021-22, which sums up about 42% revenue of Panacea Biotech.

As part of this arrangement, the pharma giant, Mankind Pharma, will be retaining the company’s well-trained sales and marketing team already engaged in this business.

“The sale of Domestic Formulation Brand portfolio is in sync with the Company’s strategic plan to eliminate debt and to capture exports of Pharmaceutical formulations in US and other international markets apart from the vaccine business in global markets. This divestment will provide liquidity for these businesses, drive investments in products under development and provide expanding capacities for key vaccine projects to drive future growth in a sustainable manner,” commented Dr. Rajesh Jain, Managing Director of Panacea Biotec.

At around 1.11 PM, Panacea Biotech added 4.99% or Rs9.45 and was trading at Rs198.65 against its previous closing price of Rs189.20. Its scrip touched the intraday high and low of Rs198.65 and Rs195.20 respectively so far.