JB CHEM board approved the trademark assignment of Azmarda brand from Novartis for 246cr.
Revenue for the brand Azmarda over last 3 yrs:
FY20: 43 cr
FY21: 58 cr
FY22: 72 cr (till Feb 22).
Assuming 80cr of revenue for full FY, JB has paid roughly 3 times the revenue.
Azmarda brand is a patented product composed of Valsartan and Sacubitril.
Combination of Valsartan and sacubitril is indicated in chronic heart failure patients with reduced ejection fraction.
Use of the above combination is increasing across the world as randomized controlled studies have shown reduced mortality and hospitalization in patients having chronic heart failure with reduced ejection fraction. From 2016 it’s been included in major cardiology society (EU and AMERICAN) guidelines as a strong recommendation for use. Practically I have seen more and more cardiologists prescribing it.
Vymada is the preferred brand used by many.
Azmarda and Cidmus are the same combination of drugs marketed as ?co-brands (of Vymada) by Cipla and Lupin respectively.
Few days back Dr Reddy lab has done an agreement with Novartis for trademark assignment of Cidmus brand at around Rs 450cr ( sales of Cidmus was 136 cr for last 12 months…cost of acquisition around 3 times the revenue).
Simple search on e-pharmacy stores shows other players like Natco,Eris also marketing the generic branded version at a lesser price.
This acquisition should fit very well for JB Chem considering their strong formulation cardiology segment focusing on chronic therapies.
discl: tracking