Panacea Biotec sells domestic formulation assets to Mankind Pharma for Rs 1,908 crore

Panacea Biotec on Tuesday said that it has entered into an agreement to sell its formulation business in India and Nepal to Mankind Pharma for Rs 1908 crore.

In FY21 - the domestic business assets generated turnover of Rs 219.85 crore, which is 35.19% of the company's revenue on a consolidated basis. Panacea has reported revenues of Rs 625 crore in FY21.

Panacea said it expects to complete the transaction by the end of this year.

Panacea domestic business majorly gets its revenues from therapeutic segments such as organ transplantation, diabetes, pain, cough and cold and gastroenterology. The company top selling brands are Pangraf (tacrolimus), Alphadol (alfacalcidol), Cilamin (penicillamine) and Livoluk Fibre (lactulose in combination with ispaghula) were ranked number one, whereas Glizid (Gliclazide + Metformin), Mycept (Mycophenolate Mofetil) were amongst the top 5 brands in their respective markets.

Panacea has been struggling with high debt. The company has a net debt of Rs 984 crore on consolidated basis with a debt equity ratio of 4.53.