JB Chemicals & Pharmaceuticals Ltd. (JB Pharma) agreed to acquire the ophthalmology portfolio of Novartis for INR 964 Crore. It will include INR 125 Crores (excluding applicable taxes, stamp duty and working capital) under the Promotion and Distribution Agreement to Novartis Healthcare Private Limited, India.
JB Pharma at its Board meeting held on Dec 19, 2023 approved the execution of a Trade-Mark License Agreement with Novartis Innovative Therapies AG, Switzerland which is perpetual in nature, for a portfolio of ophthalmology brands for the India market which will be effective from January 2027 for a consideration of USD 116 mn payable on or before 31st December 2026.
Ophthalmology is one of the fastest growing therapies in the Indian Pharma market and this deal will catapult JB Pharma to among the leading players in the ophthalmology segment.
Overall, the ophthalmology market is a structurally attractive market (major players have registered 10%+ value growth) with structural tailwinds (e.g., higher cataract surgeries driven by increased infrastructure and rising affordability, growth of 50+ population) and significant under-penetration. The brands enjoy strong recall with doctors with perception of better quality as compared to competition.
As per IQVIA, MAT September, 2023 data, sales for this ophthalmology portfolio was at INR 207.8 Crores. As per IQVIA, MAT September, 2022 data, sales for this ophthalmology portfolio was at INR 198.4 Crores. As per IQVIA, MAT September, 2021 data, sales for this ophthalmology portfolio was at INR 179.3 Crores.
JB Pharma will now rank amongst the top 4 players in its Covered Market in the Ophthalmology market
