Piramal Healthcare Acquires "i-pill", a Leading Emergency Contraceptive Brand from Cipla
Mumbai, March 23, 2010: Piramal Healthcare Limited [NSE: PIRHEALTH, BSE: 500302] ("Piramal") and Cipla Limited [NSE: CIPLA, BSE: 500087] ("Cipla") today announced the signing of a definitive agreement for purchase of all intellectual property rights in India related to "i-pill" for an aggregate consideration of Rs 95 crore.
"i-pill" features in the top-300 pharmaceutical products and recorded sales of Rs. 31 crore for the previous 12 months as per data from ORG IMS. The acquisition of "i-pill" strengthens Piramal's over the counter (OTC) portfolio which has strong consumer brands such as Lacto Calamine skin care range, Supractiv Complete, Saridon and Polycrol antacid.
Commenting on the transaction, Dr. (Mrs.) Swati A. Piramal, Executive Director - Strategic Alliances & Communications, Piramal Healthcare Ltd. said, "At Piramal Healthcare, propelled by our core values of Knowledge, Action and Care, we are devoted to making a real difference to our consumers' lives by enabling informed choices. i-pill magnifies the indomitable spirit of the new Indian woman who is resilient in the face of every adversity. It empowers Indian women to remain in control of their future without resorting to emotionally and medically stressful alternatives like abortion."
Commenting on the sale of "i-pill", Mr. Amar Lulla , Joint Managing Director, Cipla Ltd. said, "In 2007, we had created "i-pill" which is currently India 's No. 1 OTC emergency contraceptive brand. Our decision to divest the brand is driven by our current domestic product portfolio focused on prescription drugs. We are pleased that another Indian healthcare company with a strong OTC portfolio has bought the brand and are confident that Piramal Healthcare will successfully accelerate the future growth of the brand."
"i-pill" is an emergency contraceptive pill (ECP) used to prevent unplanned pregnancy and is available over the counter at local chemists. It is not an abortion pill. "i-pill" contains Levonorgestrel, a progestogen which helps prevent unwanted pregnancies if taken within 72 hours of unprotected sex. "i-pill" has no long term or serious side effects and is safe to use for almost all women except those who are allergic to Levonorgestrel.
"i-pill" has been instrumental in building awareness about the emergency contraceptive pill category in India .
The OTC market in India is estimated to be around US $1.8 billion and is growing annually at 18%. Piramal Healthcare has been an active player in the OTC space in the last few years with a strong distribution reach covering both chemists and general stores. Commenting on the OTC market, Mr. Ajay Piramal, Chairman, Piramal Healthcare Ltd. noted that, "We believe the OTC segment is still in its nascent stages in India and presents us with high growth opportunities. In particular the ECP segment which is approximately a Rs 100 crores industry and has grown by 250% in the last two years".
Kotak Investment Banking acted as the exclusive financial advisor to Cipla for this transaction.
Incorporated in 1935, Cipla is the No. 1 pharmaceutical com pany in India as per ORG-IMS. Cipla is exporting its products to over 170 countries worldwide. With approximately 150 Active Pharmaceutical Ingredients (APIs) and more than 1600 formulation products in its portfolio, the Company offers a wide range of products across all the major therapeutic categories. The Company owns and operates 19 manufacturing facilities across India . Cipla is listed in India on the National Stock Exchange (Ticker: CIPLA) and Bombay Stock Exchange (Ticker: 500087)