Latest news with #JBChemicals
Time of India
04-07-2025
- Business
- Time of India
Cipla faces revenue and margin pressure ahead of Revlimid patent expiry
Cipla faces revenue and margin pressure due to the upcoming Revlimid patent expiry, leading to underperformance and analyst downgrades. Margin is expected to drop significantly in FY26 and FY27, with concerns about finding a suitable buyer after Torrent's acquisition of JB Chemicals. While Cipla is pursuing new respiratory and complex generic assets, analysts doubt these will fully offset Revlimid's decline. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads ET Intelligence Group: Cipla has underperformed the sector indices in the past twelve months following expected pressure on revenue and margin amid Revlimid patent expiry next year. The company expects margin to drop by 140-240 bps year-on-year in the current fiscal year. It has a couple of launches for FY26 but it still might not be able to compensate for the decline in Revlimid. Analysts have retained 'reduce' rating on the stock, citing muted growth for FY26-27. Cipla has guided operating margin before depreciation and amortisation to fall to 23.5-24.5% in FY26 from 25.9% in the previous year, due to Revlimid patent expiry. Elara Capital expects a further contraction of 300 bps in FY27 as the full loss of Revlimid will be reflected in that future course of action when it comes to finding a suitor will be another concern that investors may have to grapple with given Torrent Pharmaceuticals ' recent acquisition of JB Chemicals & Pharmaceuticals. According to media reports Torrent was in talks with Cipla to buy majority stake two years ago. But the proposal hit a roadblock due to differences in valuation. Now that Torrent has acquired a stake in JB Chemicals, Cipla's promoters will have to look for other buyers in case they wish to pare the front of revenue visibility, Cipla has filed for 6 respiratory assets in US, including Symbicort and Qvar and four more to be filed in the next 12-18 generic Advair is expected to be commercialised in this fiscal year. In peptides and complex generics, 9 filings are done, and it aims to file 10 more assets in 12 to 24 months, with two-three filings in FY26 company has net cash of ₹10,807 crore. It expects to spend 5% of revenue as capex this year, which could be towards mergers and acquisitions. Revenue for FY25 grew by 8.2% year-on-year to ₹2,754.8 crore. Though the company expects a similar growth rate for FY26, Elara anticipates flat-to-low single-digit percentage FY25, North America business posted a record-high annual revenue of $934 million and $221 million for March 2025 quarter. The company expects June quarter's revenue to be muted at around $220 million."Resolution of supply issues in Lanreotride, the launch of Abraxane and Tasigna and potential launch of Advair and two-three peptide products may not, it seems, be able to compensate for decline in Revlimid in FY26," said Elara, while projecting 6-7% fall in US business for FY26 and FY27. It has downgraded the stock to 'reduce' while lowering target price by 7% to ₹1,465. Emkay Global has reiterated 'reduce' with a TP of ₹1,500 citing execution risks and valuation concerns.
Business Upturn
03-07-2025
- Business
- Business Upturn
Torrent Pharmaceuticals to acquire additional 2.41% stake in JB Chemicals for Rs 620 crore
By Aditya Bhagchandani Published on July 3, 2025, 22:20 IST Torrent Pharmaceuticals Limited has announced that it will acquire up to 2.41% of the equity share capital of JB Chemicals & Pharmaceuticals Limited (JB Chemicals) for a total consideration of approximately ₹620 crore. In a filing dated July 3, 2025, Torrent Pharma said it signed a share purchase agreement (SPA) with 48 employees of JB Chemicals to purchase 38,75,056 equity shares at ₹1,600 per share. This follows the board's earlier approval (on June 29, 2025) to acquire a controlling stake in JB Chemicals. The acquisition is subject to shareholder and regulatory approvals, and will be completed after Torrent finalizes the controlling stake transaction in JB Chemicals. The company may also acquire an additional 0.39% stake (around 6.24 lakh shares) from other employees at the same price if definitive agreements are signed later. Torrent clarified that the acquisition does not constitute a related-party transaction, and the promoter group has no interest in the deal. This move strengthens Torrent's position in the Indian pharmaceutical space as it looks to consolidate its presence by acquiring a majority stake and additional shares from JB Chemicals' employees exercising their stock options. Details of the acquisition: Stake: 2.41% equity in JB Chemicals Number of shares: 38,75,056 Price per share: ₹1,600 Total consideration: ₹620 crore Sellers: 48 employees of JB Chemicals The company also indicated it would disclose further transactions related to the potential acquisition of the remaining 0.39% stake in due course. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Recorder
01-07-2025
- Business
- Business Recorder
India's benchmark indexes close lower
MUMBAI: India's benchmark indexes edged lower on Monday, snapping a four-session rally, as profit-taking in financials near record highs overpowered optimism from easing geopolitical tensions. The Nifty 50 shed 0.47% to 25,517.05 and the BSE Sensex fell 0.54% to 83,606.46. Both indexes had gained 2.7% over the prior four sessions and added 3.1% and 2.7% in June, marking their fourth consecutive monthly advance. The Nifty and Sensex are now just about 2.9% and 2.8% below their all-time high levels hit in September. Indian markets have held firm despite global headwinds, but elevated valuations near record highs are triggering selective profit-taking, said Gaurav Garg, analyst at Lemonn Markets Desk. On the day, eight of the 13 major sectors logged losses. High-weight financials, which hit a record high on Friday, lost 0.6%. The heaviest stock in the benchmark indexes HDFC Bank lost about 0.7%. Meanwhile, small- and mid-cap indexes outperformed, rising 0.5% and 0.6%, respectively. Other Asian markets also fell, while the dollar softened on bets that weaker US jobs data could prompt deeper rate cuts. Among individual stocks, Sigachi Industries slumped 11.5% after an explosion at its Hyderabad unit led to a fire and killed at least eight people and injured over 26, according to police. Torrent Pharma rose 2% after announcing plans to acquire a 46.4% stake in JB Chemicals from private equity firm KKR. JB Chemicals dropped 6.8% following the deal, which was priced at a discount to its last close. Alembic Pharma jumped 7.3% after getting US drug regulator's nod for an injection used to treat certain types of cancer including ovarian cancer.
Time of India
30-06-2025
- Business
- Time of India
Torrent Pharma set to finalise JB Chemicals buyout in 15-18 months
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Ahmedabad-based drug maker Torrent Pharmaceuticals will complete its acquisition of JB Chemicals & Pharmaceuticals in the next 15-18 months subject to key regulatory approvals, a top company executive said in an investor call on Monday.'CCI ( Competition Commission of India ) approval will take 4-5 months and is expected by mid-December. Then there will be a one-month process to complete the minimum tender offer and consummate the transaction. Then the merger process starts that will take about 12 months,' said Sudhir Menon, CFO and executive director – finance, Torrent acquisition will be mainly debt funded, he said. 'The leverage required for the transaction is looking quite comfortable from a servicing point of view,' said Menon. 'However, we will see if equity mix is required at all.' Torrent is looking at a cost of borrowing of less than 8%.It plans to repay its debt within two and a half years of taking control of JB Chemicals.'If FY27 I am between 1.8x to 2.8x (net debt/EBITDA), let's take a mid-number of 2.5, then I should be able to repay the debt in maybe 2.5 years' time. It's quite comfortable for me,' said also added there is no immediate need to tap its approved QIP company will acquire 46.39% equity stake (on a fully diluted basis) of JB Pharma through a share purchase agreement for Rs 11,917 crores at Rs 1,600 per will trigger a mandatory open offer to acquire up to 26% of JB Pharma shares from public shareholders at an open offer price of Rs 1,639.18 per share, according to an investor presentation from has also expressed its intent to acquire up to 2.80% of equity shares from employees of JB Chemicals at transaction Chemicals shareholders will get 51 equity shares of Torrent for every 100 equity shares of JB Chemicals. Aman Mehta , whole time director, Torrent Pharma, said the acquisition is aligned to the company's strategic vision of deepening its presence in the Indian pharmaceutical market 'It expands our presence in some high growth segments and gives us a resilient platform to drive long-term growth,' he told analysts on Monday.'Additionally, it provides us with a new avenue of growth in the CDMO segment . We find this space to be attractive, and JB has a strong right to win with a successful track record in this space,' he said the US, Russia and South Africa markets will be of particular interest in the CDMO space. 'They are the most important regions outside India in the CDMO segment where we intend to have a greater presence through the acquisition,' he the India business, JB Chemical's strong capability in areas such as cardiac and gastroenterology will be complementary therapies to Torrent, while the deal also opens new therapy segments for Torrent in areas such as ophthalmology, IVF and nephrology.'The enhanced prescription footprint is positive for our overall reach and will help enhance trade visibility,' said far as impact on leadership and people post the merger, Menon said a proper retention plan will be put in place for key people. 'I believe continuity will exist,' he said.
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Business Standard
30-06-2025
- Business
- Business Standard
KKR's exit from JB Chemicals cements its healthcare track record
KKR & Co's ₹11,900 crore ($1.42 billion) exit from JB Chemicals and Pharmaceuticals marks another successful bet in India's fast-growing healthcare sector, underscoring the US-based private equity giant's strong track record in the space. KKR exited JB Chemicals on Sunday. The sale of its 46.39 per cent stake in JB Chemicals to Torrent Pharmaceuticals comes over four years after KKR acquired control of the company in 2020. The exit follows its blockbuster five-time (5x) return in Max Healthcare in 2022, which remains the largest block deal by a private equity firm in India to date, a person familiar with the matter said. In JB Chemicals, the US-based firm made 36 per cent gross internal rate of return in the exit, including sale of part of its stake via block deal early this year. The JB Chemicals deal adds to KKR's expanding healthcare portfolio in India, which includes stakes in Healthcare Global Enterprises, Baby Memorial Hospital (BMH), Healthium Medtech, and Infinx Healthcare, a US-based healthcare technology firm focused on revenue cycle and patient access solutions. Since the start of 2024, KKR's private equity arm has deployed $2 billion in India. In June, the firm arranged $600 million in financing for the Manipal group through KKR Capital Markets. The deal, anchored by KKR's private credit and insurance platforms, is aimed at supporting Manipal's long-term growth strategy. The Manipal group, which operates Manipal Health Enterprises, one of India's largest multispecialty hospital chains, has been active in the M&A (mergers and acquisitions) market. Manipal had in April 2023 sold a significant stake in its hospital business to Singapore's Temasek Holdings in a transaction valued at nearly $2 billion. KKR's back-to-back healthcare bets come amid rising investor appetite for India's healthcare sector, fuelled by growing demand for quality care, rising incomes, and increased insurance penetration. In 2024, healthcare funding saw an 80 per cent rise in deal volumes, with notable activity in medtech and single-specialty hospitals. The IT/ITeS sector deal value grew 300 per cent, driven by major transactions such as Perficient ($3 billion), Altimetrik ($900 million), and GeBBS ($865 million). Single-specialty hospitals saw particular interest, with deal volumes doubling as investors targeted underpenetrated categories such as eyecare, oncology, and IVF, as per a report by Bain & Company.
