JB Pharma enters pact with Novartis for select ophthalmology brands at Rs 1,089 crore

19 Dec 2023 , 03:00 AM

JB Chemicals & Pharmaceuticals Ltd (JB Pharma) announced on Tuesday that it has signed a trademark license deal, as well as a marketing and distribution agreement, with Novartis for certain ophthalmic brands for Rs 1,089 crore.

The board of directors approved the execution of a perpetual trademark license agreement with Novartis Innovative Therapies AG for a portfolio of select ophthalmology brands for the Indian market at its meeting on December 19, 2023, JB Pharma said in a regulatory filing.

The board also authorized a three-year promotion and distribution deal with Novartis Healthcare Pvt Ltd for the same portfolio of select ophthalmology brands in the Indian market, beginning in December 2023.

Concerning the financial terms of the agreements, JB Pharma stated that it will pay USD 116 million (Rs 964 crore), excluding applicable taxes, stamp duty, and working capital, to Novartis Innovative Therapies AG, Switzerland, for the trademarks license agreement.

Another Rs 125 crore will be paid to Novartis Healthcare Pvt Ltd, India, under the promotion and distribution agreement, excluding applicable taxes, stamp duty, and working capital.

Overall, JB Pharma stated that the ophthalmology market is structurally attractive, with major players registering over 10% value growth due to structural tailwinds such as increased cataract surgeries driven by increased infrastructure and rising affordability, growth of the 50-plus population, and significant under-penetration.

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