Panacea Biotec Pharma Limited, a subsidiary of Panacea Biotec Limited, signed an agreement with Mankind Pharma to sell its domestic formulations business for a transaction value of ₹1,908 crore.
Panacea Biotec holds the licence to manufacture Russian Covid-19 vaccine Sputnik V.
As per a regulatory filing on Tuesday, Panacea Biotec Pharma Limited informed that the board of directors have approved the sale of its domestic business assets constituting its pharmaceutical formulations brands in India and Nepal including related trademarks, copyrights and such other intellectual property of PBPL to Mankind Phanna Limited for transaction value of ₹1,908 crore excluding GST.
The companies had entered into the binding term sheet on January 31, 2022. Under the agreement, the parties are endeavouring to execute the asset purchase agreement for the Transaction on or prior to February 27, 2022, the statement said.
The transaction is expected to be completed in the current financial year.
As per the disclosure on the stock exchanges, PBPL's domestic business generated turnover of ₹219.85 crore for the last fiscal year. This is 63.75 per cent of the revenues of PBPL and about 35.19 per cent of the consolidated revenues of parent Panacea Biotec Limited.
Notably, Panacea Biotec is one of six companies that have entered into partnerships with the Russian Direct Investment Fund (RDIF), for the Covid-19 vaccine Sputnik V.
Panacea Biotec shares gained 4.99 per cent to ₹251.25 on BSE Tuesday.