The Hindu Business Line : Nicholas Piramal buys two brands for Rs 116 cr

Nicholas Piramal India Ltd and Khandelwal Laboratories Pvt Ltd have signed and agreement for the purchase of anti-spasmodic Anafortan and antibiotic CEFI brands of K-Lab for a total consideration of Rs 116 crore.

K-Lab has agreed to provide NPIL the use of certain patents with non-compete assurances for Cefixime (CEFI) and Camylofin (Anafortan) based drugs.

Anafortan and CEFI groups have revenues of Rs 49 crore, an NPIL note said.

The CEFI group comprises third-generation, wide-application, Cefixime-based formulations in pure and combination forms.

It is marketed in nine dosage forms, including in extended release and once-a-day delivery formats.

K-Lab had got patents from the Indian Patent Office for these delivery systems.

CEFI group had revenues of Rs 26 crore for the year ended March 31. Industry estimates put the Cefixime-based drugs segment at Rs 624 crore, growing at 25.4 per cent.

Anafortan is a smooth muscle, anti-spasmodic drug. The anafortan group consists of six Camylofin-based formulations in pure and combination forms.

Camylofin is known to be a safe anti-spasmodic drug, which does not cause side effects in infants and pregnant women.

Anafortan had revenues of Rs 22 crore for the year ended March 31.

Genesis Management Consultancy Services advised Nicholas Piramal on the transaction, while N.A. Shah Associates (Consultants) Pvt. Ltd advised Khandelwal Laboratories.

NPIL shares were up four per cent on the BSE at Rs 320.25

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