Torrent Pharma acquires Elder's domestic operations
The deal between Torrent Pharma and Elder is worth over Rs 2,000 crore.
Mumbai, December 14, 2013: Torrent Pharmaceuticals has entered into a definitive agreement to acquire the branded domestic formulations business of Elder Pharmaceuticals in India and Nepal for Rs 2,004 crore. The deal is expected to help the Ahmedabad-based company to widen its market share and increase its turnover to Rs 4,831 crore. On the other end the deal will help Elder Pharma to cut its debts and restructure its operations.
It may be noted here that Elder’s domestic operations include 30 brands, mainly in the women’s healthcare, pain management and Nutraceuticals business. Its premium calcium supplement brand Shelcal has a strong market share of about 30-32 per cent. Torrent Pharma is expected to get a foothold in women's healthcare and pain management business with this deal.
The deal has been signed at a valuation of three times the market capitalisation of Elder Pharma. The Mumbai-based company, promoted by Mr Jagdish Saxena, began operations in 1987 largely by selling basic antibiotic products.