Nicholas Piramal buys two Khandelwal Laboratories brands for Rs116 crore

16 April 2008

Indian pharma giant Nicholas Piramal has acquired the anti-spasmodic Anafortan and antibiotic CEFI brands from Khandelwal Laboratories Pvt Ltd (K-Lab) for a total consideration of Rs116 crore.

As part of the agreement, Khandelwal Laboratories will allow Nicholas Piramal the use of certain patents with non-compete assurances for the two cefixime- and camylofin-based drugs.

The two drug groups generated revenues of Rs49.1 crore, with operating margins of Rs20.7 crore for the financial year ended March 31, 2008, Nicholas Piramal stated.

"CEFI and Anafortan offer unique therapeutic value to patients, which we hope to offer to patients across India with our national sales and distribution network," Nicholas Piramal chairman Ajay Piramal said in a statement.

CEFI (cefixime) is a third generation cephalosporin antibiotic and is marketed in nine dosage forms, which are based on extended release and once-a-day drug delivery systems.

The CEFI group had revenues of Rs26.2 crore for the year ended March 31, 2008, according to Nicholas Piramal.
 
According to data from market research agency ORG-IMS, the cefixime-based drugs segment is worth Rs624.6 crore and is growing at 25.4 per cent annually. 
 
Anafortan (Camylofin) is an anti-spasmodic drug for treating stomach cramps and ulcers. K-Lab's Anafortan group consists of six Camylofin-based formulations in pure and combination forms.