Ahmedabad-based Torrent Pharma has completed the acquisition of women healthcare brands Regestrone and Pregachieve for India from Swiss pharma major Novartis AG. While the company did not disclose the deal size, it is estimated to be close to Rs 500 crore.
Torrent was in talks to acquire these brands since the last few months and had entered into a pact with Novartis last month to acquire the two brands. Both the brands are prescribed by gynaecologists for management of abnormal uterine bleeding, peri and post menopausal symptoms and infertility.
Torrent said in a release here that women healthcare is an important therapy area for the company and it intends to focus on it in the future.
“With acquisition of key brands of Elder like Shelcal and Deviry, impetus on this therapy area has also increased. Regestrone and Pregachieve will further fortify the Hormone Segment. The use of Hormones amongst the Gynaecologists is on an increase because of lifestyle changes,” the statement said.
Torrent has a strong presence in dermatology segment (post it acquired the Indore facility of Zyg Pharma along with some of its formulations in May 2015). It is now looking at building its presence across other key therapies and small brand acquisitions is likely to play a key role.
It also acquired the generic anti-bacterial minocycline tablets after the US Federal Trade Commission ordered Sun Pharma to divest the brand as part of a conditional approval for its $4 billion merger with Ranbaxy. Its key acquisition so far has been that of the domestic branded formulations business of Elder Pharma for Rs 2,004 crore three years ago, which helped the company expand its market share in women’s healthcare, nutraceuticals and pain management.
Novartis, on the other hand, globally has been selling businesses it considers non-core. Last year, it sold 14 established prescription brands in Japan to Sun Pharma for Rs 1,900 crore.
Analysts believe that focus on strengthening presence in the domestic market comes after the company’s US sales have been under pressure. The US business which accounts for 40 per cent of its turnover, had fallen by 51 per cent in Q3 FY17 thanks to slowing sales of generic Abilify.