JB Chemicals -; Pharma to acquire brands from Sanzyme for Rs628cr; Stock jumps over 1%

27 Jan 2022 , 10:48 AM

J.B. Chemicals & Pharmaceuticals Limited (JBCPL) to acquire brands for the India market from Sanzyme Private Limited (Sanzyme), a leading player in the probiotics and reproductive health segment in the country. The transaction is valued at Rs628cr and is expected to be completed in the next two weeks subject to customary closing formalities.

Sanzyme, ranked amongst the top five probiotics players in the country, is engaged in the manufacture, distribution and marketing of specialty probiotics formulations, infertility management products and nutraceuticals products.

“We are glad to announce our first acquisition which expands our presence into new Therapeutic areas and also increases the addressable opportunity in the India Pharma market. This is in line with our stated objective of building big brands through category
leaders. Sanzyme has been a pioneer in the probiotics segment and we wish to build further on this legacy” mentioned Nikhil Chopra, CEO & Whole-time Director, J.B. Chemicals & Pharmaceuticals Limited.

He further added “This acquisition also reinforces our strategic intent to evaluate opportunities to supplement our growth ambition in India. Overall, our objective is to deploy capital judiciously to enhance value for all stakeholders.”

JBCPL will be amongst the top five probiotics players in the country, in a segment which is growing at around 12 -14%. This category creates synergies with its strong prescriber base in gastroenterology and nephrology segments. Leading brands like Sporlac, Lobun, Oxalo, Pubergen, Nano-leo and Gynogen will now be part of the JBCPL franchise.

The acquired brands have a pan-India presence and wide distribution reach of ~ 300,000 chemists and ~100,000 prescribers.

Probiotics portfolio includes Sporlac (which is the third largest probiotics brand in India) and specialized products such as Lobun( A probiotic used for delaying progression of Chronic Kidney Disease) and Oxalo (alternate risk-free therapy to decalcify kidney stones).

The reproductive health segment has a complete range of infertility and hormone products. Following the acquisition, these products will derive significant visibility by leveraging JBCPL’s distribution network across the country.

At around 10.46 am, JB Chemicals was trading at Rs1749.20 per piece up by Rs20.65 or 1.2% on Sensex.