Mumbai: Chennai-based Bafna Pharmaceuticals is set to buy haemoglobin drug Raricap from Johnson & Johnson for Rs 21crore, said two sources with direct knowledge of the deal, pushing the Indian company’s shares 8% higher in early trades on Monday.
Bafna Pharma plans to sell Raricap globally, the sources told Reuters.
“We are in talks and an agreement would be signed soon,” Bafna Mahaveer Chand, managing director, Bafna Pharma, told Reuters by telephone. He, however, did not confirm the deal value.
“The deal would be signed later on Monday,” one of the sources said.
The Business Line newspaper on Monday reported Bafna Phamra had concluded talks to buy a drug from Johnson & Johnson.
“Post the deal, Johson & Johnson will lose rights over the Raricap trademark and the product had peak sales of Rs 13 crore,” a source said.
Raricap is primarily given to pregnant women to increase the haemoglobin levels in the blood.
“Bafna was manufacturing this brand for Johnson & Johnson for a few years but the arrangement was discontinued after the drug underwent certain formulation changes,” a source said.
Bafna Pharma, which is a key manufacturer of paracetamol in India, had clocked sales of Rs 74.4 crore in FY10 and expects to cross Rs 500 crore in revenue by FY13, its website said.
SBI Capital Markets advised Bafna Phamra on the deal.