Mankind Pharma Transfers OTC Business to Subsidiary in Strategic Realignment

4 Sep 2024 , 10:21 AM

Mankind Pharma signed a Business Transfer Agreement (BTA) to transfer its over-the-counter (OTC) business to its wholly owned subsidiary, Mankind Consumer Products Private Limited (MCPPL).

The transfer will occur through a slump sale, where the business is sold for a lump sum without itemizing the values of individual assets and liabilities. MCPPL will take over the OTC business as a going concern under this deal.

Mankind Pharma’s OTC portfolio includes a range of non-prescription products, which will now be managed by Mankind Consumer Products.

The transfer is contingent on pre-conditions, closing actions, and terms outlined in the BTA. The objective of this move is to streamline operations and allow Mankind Pharma to focus more on its core pharmaceutical business.

This strategic realignment is part of Mankind Pharma’s ongoing efforts to adapt its business strategy to market conditions and leverage growth opportunities in the OTC sector.

The transfer is in line with Mankind Pharma’s previously announced strategy on April 2, aiming to enhance operational efficiency by consolidating the OTC business under MCPPL. Financial details of the slump sale were not disclosed.

Mankind Pharma is a leading Indian multinational pharmaceutical and healthcare company, headquartered in Delhi, with a strong presence in various therapeutic areas, including antibiotics, cardiovascular, gastrointestinal, dermal, and erectile dysfunction medications.

As of 2023, Mankind Pharma operates 25 factories and 6 R&D centers in India, deriving 97% of its revenue from the Indian market.

The company is the fourth-largest pharmaceutical firm in India by domestic sales, with leading consumer healthcare brands like Manforce (condoms), Prega News (pregnancy test kits), and Unwanted-72 (emergency contraception).