HQ team
October 12, 2022: Marksans Pharma, a listed company, is set to acquire a manufacturing site of Tevapharm, an Indian subsidiary of Israel’s Teva, in Goa to expand its product portfolio.
The company gave no details on the financials of the acquisition of Tevapharm’s facility based in Goa. The deal is on a slump sale basis, according to a BSE filing.
The manufacturing site is spread across 47,597 square meters and has approvals to manufacture products from the EU, Health Canada & Japanese Health Authority.
Tevapharm, one of the largest Israeli companies in India, has been in es operation for more than 17 years with nine legal entities. It has three API plants, two finished pharmaceutical formulation plants and two research and development centres in India.
Slump sale
Some large corporations operate multiple businesses across different areas of the industry. So, a single entity could have separate segments or undertakings with its assets and liabilities, each focused on another company.
When the need arises, the entity can sell off a segment or the undertaking as a whole, known as a slump sale.
Marksans has agreed to retain the site employees with existing terms of employment. The transaction is in cash and may be finalised by April 1, 2023.
Teva’s affiliate Watson Pharma Private Limited will continue to own and operate its other manufacturing site at Verna Industrial Estate in Goa.
Deal extension
Marksans will continue to supply Teva’s affiliates with certain products until the end of the financial year 2023 as part of the agreement. With mutual consent, the companies can extend the pact.
The acquisition had the “potential to significantly expand” the company’s manufacturing capability and accelerate its core growth strategy, said Mark Saldanha, promoter and managing director of Marksans. “It will supplement our innovative product portfolio.”
With the acquisition, it currently expects to double the existing Indian capacity from eight billion units per annum.
Marksans plans to make tablets, hard and soft gel capsules, ointments, gummies, and creams, from the acquired facility. It is a scalable capacity to manufacture oral solid dosage forms, according to the filing.
