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<ul><li>All the four brands have a combined market size of ₹1800 crore and accounted for as much as ₹33 crore in revenues in FY22.</li><li>The pharma company will take over the manufacturing, marketing and distribution of these brands in India.</li><li>The integration and transition of the brands are expected to be completed in the next two weeks.</li></ul>KKR-backed <keyword id="505502" type="General" weightage="80" keywordseo="jb-chemicals-and-pharmaceuticals" source="Orion">JB Chemicals and Pharmaceuticals</keyword> said that it acquired four pediatric brands — Z&amp;D, Pedicloryl, Pecef and Ezinapi from <keyword id="177825" type="General" weightage="20" keywordseo="Dr-Reddys-Laboratories" source="Orion">Dr Reddy’s Laboratories</keyword>. The acquisition has been done for a cash consideration of ₹98.3 crore, excluding working capital and taxes. All the four brands have a combined market size of ₹1800 crore and accounted for as much as ₹33 crore in revenues in FY22. “Overall, the brands acquired have significant growth potential to strengthen our already established presence in the pediatric category, which is synergistic to our current portfolio, speciality depth and geographical presence,” said <keyword id="1217" type="General" weightage="80" keywordseo="nikhil-chopra" source="Orion">Nikhil Chopra</keyword>, CEO at <keyword id="5340080" type="General" weightage="20" keywordseo="JB-Pharma" source="Orion">JB Pharma</keyword>. Z&amp;D produces zinc supplements used for boosting immunity. Pedicloryl oral solution is used in children in hospitals for idiopathic pain management. Pecef caters to the bacterial infections as well as respiratory tract infections in children. Ezinapi cream is used as an emollient for diaper rashes in infants. JB Pharma will take over the manufacturing, marketing and distribution of these brands in India. “It will also help us significantly leverage our on-the-ground field force strength and widen our offerings in the pediatric basket - comprising gut health and respiratory infection products for healthcare professionals across the country,” said Chopra. The integration and transition of the brands are expected to be completed in the next two weeks. “All the four brands have a lion’s share in their respective spaces. We will continue to focus on evaluating opportunities for strengthening our India domestic business,” Chopra added. According to media <a href="https://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/jb-pharma-acquires-paediatric-brands-from-dr-reddys-for-rs-98-3-crore/articleshow/92590368.cms">reports</a>, the pharma company has been looking out for companies to acquire in the domestic market. It had also acquired brands from Sanzyme — which deals in probiotics and reproductive health for ₹628 crore in January. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/ambani-and-adani-valuations-surge-while-tatas-birlas-see-major-declines-in-the-first-half-of-2022/articleshow/92593235.cms">Ambani and Adani valuations surge while Tatas, Birlas see major declines in the first half of 2022</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/telecom-gear-firm-parallel-wireless-lays-off-500-employees-including-in-india/articleshow/92592940.cms">Telecom gear firm Parallel Wireless lays off 500 employees including in India</a>

JB Pharma acquires four pediatric brands of Dr Reddy’s Labs for ₹98.3 crore

<ul><li>Private equity giants like <keyword id="6354544" type="UNKNOWN" weightage="20" keywordseo="kkr">KKR</keyword>, the <keyword id="44803" type="CITY" weightage="20" keywordseo="Carlyle-group">Carlyle group</keyword> and others are interested in acquiring a controlling stake in <keyword id="148835" type="COMPANY" weightage="20" keywordseo="JB-Chemicals">JB Chemicals</keyword>, a little-known pharma company in India.</li><li>Although JB Chemicals is a small player in the Indian pharma industry, it has built four strong brands and has market leadership in three of them, which has resulted in industry-beating growth.</li><li>Some of the popular brands that JB Chemicals owns include Metrogyl, Rantac, Cilacar and Nicardia – driving 80-85% of the company’s India formulations revenue.</li></ul>JB Chemicals, a little-known pharma company in India with a market capitalization of ₹4,600 crore is reportedly on the radar of private equity giants around the world. This has sent the stock to an all-time high of ₹621 in intra-day trade. JB Chemicals is a relatively small player when it comes to the Indian pharmaceutical industry, behind giants like Sun Pharma, Dr Reddy’s and others. However, its inexpensive valuation, strong growth and a healthy balance sheet have private equity giants interested in it. <div type="Article" hostid="261" msid="75425845" title="IRCTC share price has jumped 30% in April so far despite the lockdown that’s halted trains, ticketing, and even Rail Neer sales" mstype="2" mssubtype="0"></div> According to a <a href="https://economictimes.indiatimes.com/markets/stocks/news/jb-chemicals-jumps-5-as-four-pe-firms-in-race-to-acquire-promoter-stake/articleshow/75569688.cms">report</a> by Economic Times, global private equity players KKR, the Carlyle group, Apax Partners and PAG are interested in acquiring a controlling stake in JB Chemicals. Its promoters, Jyotindra Bhagawanlal Mody and family are said to be in talks to sell their 56% stake in the company. The acquisition is valued at ₹5,000 crore ($650 million), which is 9% higher than JB Chemicals’ current market cap of ₹4,600 crore ($600 million). The news has sent the company’s stock rallying, hitting an all-time high of ₹621 before closing at ₹603 on Wednesday, May 6. <div type="image" title="JB Chemicals stock" msid="75574593" hostid="261"></div> Here’s what makes JB Chemicals an attractive acquisition Inexpensive valuation and healthy free cash flows The company’s valuation at ₹5,000 crore is inexpensive, according to a report by market research firm IIFL Securities dated January 17, 2020. Apart from this, it also has healthy free cash flows, which make up 22% of the company’s balance sheet. Since then, the valuation has only gone down as the share price cracked in the coronavirus carnage. Four strong brands with market leadership in three of them <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.99375pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.99375pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top 4 brands </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.99375pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Other products </td></tr><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.99375pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY16 </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.99375pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">85% </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.99375pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td></tr><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY17 </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">86% </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14% </td></tr><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY18 </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">86% </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14% </td></tr><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY19 </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">86% </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14% </td></tr></tbody></table> Instead of spreading itself thin with several products, JB Chemicals has focused on building a few large brands like Cilacar, Rantac, Metrogyl and Nicardia. Out of these, it has market leadership in three, which together account for 80-85% of the company’s revenue. Focusing on these core brands has also helped JB clock in growth of 17-22% over the last two years. Out of these, Cilacar and Nicardia, the two cardiovascular brands, have grown by more than 20% in the past four years. Outperforming industry growth in the past seven years JB Chemicals’ focus on building strong brands in the cardiovascular and gastrointestinal segments has helped it outperform industry growth for seven years straight. “This outperformance vs. the industry has been driven by increasing exposure to chronic therapies, as contribution of chronic products in the company’s India revenue mix has expanded from 29% in 2016 to 42% in 2019,” says a report by IIFL Securities. See also: <a href="https://www.businessinsider.in/stock-market/news/airtel-shares-set-for-a-catch-up-rally-after-reliance-jio-takes-a-huge-valuation-lead/articleshow/75533860.cms">Airtel shares set for a catch up rally after Reliance Jio takes a huge valuation lead</a> <a href="https://www.businessinsider.in/business/news/the-way-bhel-is-trying-to-turn-the-tide-is-a-sign-of-how-india-wants-to-capitalise-on-us-china-tensions/articleshow/75548309.cms">The way BHEL is trying to turn the tide is a sign of how India wants to capitalise on US-China tensions</a> <a href="https://www.businessinsider.in/finance/news/irctc-share-price-has-jumped-30-in-april-so-far-despite-the-lockdown-thats-halted-trains-ticketing-and-even-rail-neer-sales/articleshow/75425845.cms">IRCTC share price has jumped 30% in April so far despite the lockdown that’s halted trains, ticketing, and even Rail Neer sales</a>

JB Chemicals, a little-known pharma company in India is now on the radar of private equity giants around the world – here’s why

Mumbai, Jul 16 () Despite the massive disruptions due to the pandemic, deal street was vibrant in the first half of 2020 with M&amp;A value rising 14.5 per cent to USD 43.54 billion, thanks to Reliance contributing nearly half of the deal value, according to a report. However, as per the data collated by Mergermarket, the deal count dipped 24.7 per cent to 183 transactions during the period under review. Between late April and June, Reliance Industries sold nearly 25 per cent in its telecom arm Jio Platforms to 10 investors, including Facebook, which snapped up 9.99 per cent for over Rs 43,000 crore. Together, Reliance raised around Rs 1.2 lakh crore, including through the largest QIP sale for over Rs 53,100 crore. Beginning April 22, Reliance sold 24.71 per cent stake in Jio to Facebook, Silver Lake Partners, General Atlantic, KKR and other investors scooping up USD 15.27 billion. The selling spree continued into July with the latest being Google picking up 7.7 per cent for over Rs 33,700 crore on Wednesday. "H1 M&amp;As increased 14.55 per cent to USD 43.54 billion in value despite the pandemic, largely thanks to a series of stake sale by Jio Platforms to 10 investors since April, despite a 24.69 per cent year-on-year drop in volume to 183 transactions from 243 deals in H1 of 2019 generating USD 38 billion," Mergermarket said. Though the in-bound deals came down 28.8 per cent to 89, the deal value increased to USD 26.9 billion compared to USD 21.38 billion from 125 deals in H1 of 2019. This was in spite of the deal value plunging from USD 20.22 billion to USD 6.68 billion, while in volume the same dipped to 42 from 47 deals. According to the data, the first half deal value of USD 26.9 billion through 89 transactions represents 71.66 per cent of the USD 37.53 billion from 242 deals reported in FY19. The out-bound deals dipped 37.6 per cent to USD 881 million across 21 deals from USD 1.42 billion from 34 transactions in H1 of 2019. This makes the first half to be the worst in terms of outbound deal value and deal count since the first half of 2014 at USD 650 million from 33 deals. Domestic M&amp;As generated USD 16.64 billion, on par with the last year levels, but the deal count shrank 20.3 per cent to 94. The largest domestic deals were the acquisition of Aircel by a group of investors including UVARC for USD 2.6 billion and the 75 per cent stake sale in Krishnapatnam Port Company to Adani Ports &amp; Special Economic Zone for USD 1.63 billion. Other high-profile deals included divestment of NTPC's hydroelectric power unit THDC for USD 1.5 billion and power utility Neepco for USD 1.44 billion. Private equity buyouts jumped by 48 per cent to USD 9.07 billion across 53 deals from USD 6.1 billion across 66 deals. The telecom sector accounted for almost 67 per cent of total such deals in value worth USD 6.1 billion across seven deals. Mergermarkets expects deal-making volume to further fall as the economy remains crippled and the uncertainties over the potential re-emergence of the pandemic. Infrastructure, renewables and pharma and healthcare may attract investments in the second half as deals that are at advance stage could get closed. JB Chemicals sold its majority stake to KKR for USD 617 million earlier this month and a few other deals in the pharma segment include Adar Poonawala's Serum Institute looking to raise up to USD 1 billion for its pandemic division to develop vaccines. In the renewables sector, Sembcorp Energy, IL&amp;FS and Mytrah Energy are in active discussions planning to sell stakes to PEs. BEN BAL BAL

Deal street jumps 14.5% in H1 to $43.5 bn on Jio stake sales

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Courtesy of Columbia CareNicholas Vita, the CEO of Columbia Care.</div></div></div><ul class="summary-list"><li>Medical cannabis company Columbia Care started trading on the NEO Exchange on Monday after it was acquired by Canaccord Genuity Growth Corp, a SPAC. The deal values Columbia Care at $1.4 billion.</li><li>Business Insider sat down to talk about future plans with Columbia Care's CEO, Nicholas Vita, at the company's new dispensary in Brooklyn. </li></ul>In 2018, it was seemingly every week that cannabis companies with US operations went public on the Canadian Securities Exchange went public via a reverse merger on the Canadian Securities Exchange. Columbia Care, a medical cannabis company that recently opened a slick new dispensary in <keyword id="46801" type="COMPANY" weightage="60" keywordseo="prime">prime</keyword> downtown Brooklyn, is taking a different path: on Monday, it started trading on Canada's NEO Exchange, a newer exchange based in Toronto that's more commonly thought of as a home for exchange-traded funds.Business Insider sat down with Columbia Care CEO Nicholas Vita at the company's new dispensary in downtown Brooklyn last week.Vita, a former Goldman Sachs investment banker, said that the new public listing would provide fuel to pursue acquisitions to enter new states and the European market. Read more:<a href="https://www.businessinsider.com/canaccord-genuity-pursuing-finra-approval-to-custody-us-stocks-2019-3"> A Canadian investment bank is quietly pursuing a critical regulatory approval that would solve one of the biggest pain points for the US marijuana industry</a>The deal, in which Columbia Care will be acquired by Canaccord Genuity Growth Corp, a special purpose acquisition company or SPAC owned by the investment bank Canaccord Genuity, values the company at $1.4 billion. "The next six months are going to be incredibly busy," said Vita. The company has plans to expand into seven new markets, and build out their footprint in the markets they're already in, said Vita.To be more specific, Vita said Ohio, Pennsylvania, and Illinois all have exciting potential as medical cannabis markets. And, despite California's crowded recreational marijuana industry, Vita said "no one is focusing on the medical patient" there.<div class="KonaFilter image-container display-table"><div><div class="image on-image">Courtesy of Columbia CareColumbia Care's new medical marijuana dispensary in Brooklyn, New York.</div></div></div>Vita said Columbia Care is working on bringing pharmaceutical-grade medical marijuana products to California, both in their own dispensaries and with partnerships. And Illinois' new governor, JB Pritzker, made legalizing marijuana a focal point of his campaign last year. Also on Vita's radar: Europe. "Internationally, Western Europe is a focus of ours - we've been clear about telegraphing that to the market."Vita said Columbia Care holds valuable licenses in the European Union, and that the company will see "meaningful" revenue from the EU this year."We believe the lessons we learned in the US on the medical side are transferrable," said Vita, including intellectual property, know-how in terms of manufacturing standards, as well as data. "All of that is stuff that's unique to us, that we can bring to the European theater and hopefully have a receptive audience," said Vita.Read more:<a href="https://www.businessinsider.com/marijuana-industry-investment-custodial-issues-2018-11"> Big asset managers like BlackRock are sitting on the sidelines of the $75 billion US marijuana industry because of one big pain point</a>Columbia Care isn't the first cannabis company to look eastward, however. As more European countries weigh legislation to legalize medical marijuana, both Canadian and US cannabis companies have started to build out their presence across the Atlantic Ocean. Tilray recently opened an EU campus in Portugal, including outdoor and greenhouse marijuana cultivation sites, as well as research labs, packaging equipment, and offices. And not to be outdone, Canadian cannabis behemoth Canopy Growth recently acquired a Spanish marijuana cultivator, Cafina, and owns licensed grow facilities in Denmark and Germany.On the homefront, Vita said he's cautiously optimistic that New York Governor Andrew Cuomo will legalize recreational marijuana soon."You know - I don't know - I do believe it will happen," said Vita. "What I'd also like to believe is that it will happen in a way that's very methodical, is thought out, and allows decision makers to expand further downstream if they so choose. But I don't know if you need to have a one-stop shop. I don't think you can solve everything at the same time.""It's almost better to push back against the tide, of conventional wisdom, and sort of take each problem and work through it in a staged way," added Vita. "We're prepared in any eventuality, that being said."In terms of specific deals, Vita said they look at everything. "Every transaction that you've heard about or written about, we've probably looked at," said Vita.And to Vita, though cannabis is often lumped in with 'sin' stocks - tobacco, liquor, and firearms, generally speaking - he believes medical cannabis actually fits in with the trend of ESG (environmental, social, and governance) investing that's become more prominent among some of the biggest money managers."I have a hard time to ESG statements because no one's really showing me anything tangible," said Vita, pointing to research showing that medical cannabis can reduce opioid dependency among affected adults. "This is one where we actually have a tangible outcome."<ul class="read-more-links"><li>Read more:</li><li><a href="https://www.businessinsider.com/citigroup-reevaluating-its-policy-on-testing-applicants-for-marijuana-2019-4" data-read-more-link="" data-e2e-name="read-more-link">Citigroup is reevaluating its policy on testing job applicants for marijuana use as Wall Street banks weigh whether to work with the $75 billion cannabis industry</a></li><li><a href="https://www.businessinsider.com/study-cbd-products-are-mislabeled-and-contain-dangerous-chemicals-2019-4" data-read-more-link="" data-e2e-name="read-more-link">A California company tested 20 popular CBD products and found 'insanely high levels' of dangerous chemicals and misleading labels</a></li><li><a href="https://www.businessinsider.com/canopy-growth-acreage-holdings-deal-could-spur-cannabis-ma-boom-2019-4" data-read-more-link="" data-e2e-name="read-more-link">Top cannabis CEOs say Canopy Growth's $3.4 billion purchase of pot cultivator Acreage 'shakes the foundation of what has been true' and will spur a cannabis M&amp;A boom</a></li><li><a href="https://www.businessinsider.com/citigroup-execs-consider-role-in-banking-cannabis-deals-2019-3" data-read-more-link="" data-e2e-name="read-more-link">Citigroup is considering working with pot companies as banks figure out ways to chase a $75 billion market</a></li></ul> <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/fall-into-black-hole-2016-11">Astronomers just captured the first image of a black hole. Here are the horrifying things that would happen if you fell into one.</a></h3> <div> </div> </div>

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JB Pharma acquires four pediatric brands of Dr Reddy’s Labs for ₹98.3 crore

Vaamanaa Sethi

JB Chemicals, a little-known pharma company in India is now on the radar of private equity giants around the world – here’s why

Rounak Jain

Deal street jumps 14.5% in H1 to $43.5 bn on Jio stake sales

PTI

The CEO of cannabis company with a slick new dispensary in Brooklyn talks about expansion plans following the company's $1.4 billion public debut

Jeremy Berke

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