JB Pharma buys Dr Reddy's Labs pediatric brands for Rs98.3 Crore

JB Chemicals and Pharmaceuticals, KKR-backed, said it had acquired four pediatric brands from Dr. Reddy’s Laboratories -- Z&D and Pedicloryl.

The cash consideration for the acquisition was Rs98.3 Crore, which excludes working capital and taxes. The combined market value of all four brands is Rs1800 crore. They accounted for up to Rs33 crore in revenue 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,"  stated Nikhil Chopra CEO of JB Pharma.

Z&D makes zinc supplements that boost immunity. Pedicloryl is an oral solution that's used to manage idiopathic pain in children. Pecef treats both bacterial and respiratory infections in children. Ezinapi cream can be used to treat diaper rashes in infants.

JB Pharma will manage the distribution, marketing, and manufacturing of these brands in India. Chopra stated, "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," 

In the next two weeks, the integration and transition of both brands is expected to be complete.  Chopra said "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,"

Media reports indicate that the pharma company is looking for domestic companies to buy. Sanzyme, which sells probiotics and reproductive healthcare products, was also bought by the pharma company.