Summary :
- The deal size is expected to be in the range of Rs 4,000-5,000 crore, sources close to the development . A mid-sized player, Medley Pharma — founded by Sami Khatib in 1969 as ‘Medley Laboratories’ — is among the top 40 pharmaceutical companies in India, according to healthcare market research firm IQVIA.
Medley Pharma , the privately held Mumbai-based company, is on the block. Drug majors like Cipla , Dr Reddy’s, KKR-backed JB Chemicals, and Torrent, along with marquee private equity investors Advent, Carlyle and Blackstone are seen as potential buyers for its Rs 1,000-crore business. The deal size is expected to be in the range of Rs 4,000-5,000 crore, sources close to the development .A mid-sized player, Medley Pharma — founded by Sami Khatib in 1969 as ‘Medley Laboratories’ — is among the top 40 pharmaceutical companies in India, according to healthcare market research firm IQVIA. Khatib’s second generation — Suhel, Sarosh and Sahir — manage the company now.It has manufacturing plants in the domestic formulations market, primarily in the hematinic, anti-diarrhoea, cardiovascular, anti-diabetes, analgesic and anti-ulcer segments. Gastroenterology, anti-diabetes and gynaecology drugs contribute two-thirds of revenues, with top brands like Telmed, RB Tone, Vogli, O2 and Dompan. Certain brands launched first in India include Dompan (Domperidone & Pantoprazole), O2 (Ornidazole & Ofloxacin), Tazocef (Tazobactum & ceftriaxone) and Ostium k2 .
Medley Pharma
It has manufacturing vegetation in the home formulations market, primarily in the hematinic, anti-diarrhoea, cardiovascular, anti-diabetes, analgesic and anti-ulcer segments. Gastroenterology, anti-diabetes and gynaecology medication contribute two-thirds of revenues, with high manufacturers like Telmed, RB Tone, Vogli, O2 and Dompan. Certain manufacturers launched first in India embody Dompan (Domperidone & Pantoprazole), O2 (Ornidazole & Ofloxacin), Tazocef (Tazobactum & ceftriaxone) and Ostium k2 (first model of vitamin K27 mixture in India).
According to a latest report from credit standing company Crisil, the corporate’s income is estimated to have grown by 16% to Rs 926 crore for fiscal 2022, from Rs 800 crore in the earlier yr, backed by elevated contribution from the acute phase (about 53% of the general gross sales) and relaxation from continual therapies. It is predicted to keep progress of over 8-10% over the medium time period, pushed by its established place in the home formulations market and rising concentrate on the continual phase (which now accounts for 47% of gross sales, as in contrast to 30%, just a few years in the past).
Two of its merchandise, RB Tone and O2 (to deal with hematinic deficiency and diarrhoea, respectively) characteristic among the many high 300 manufacturers, in accordance to market analysis information. In fiscal 2022, about 53% of revenues got here from acute therapies, and the remaining from the continual phase. The firm’s product profile is reasonably diversified with the highest 5 manufacturers accounting for 57% of income.
Sources mentioned that the promoters are a strategic sellout, together with all property, with Cipla probably being a frontrunner. The firm didn’t remark until the time of going to the press.
Medley’s working margins improved to 21% in fiscal 2022 and may maintain at 19-21% ranges, aided by an enchancment in scale and higher mounted price absorption. Additionally, there’s a concentrate on rising provides to regulated markets, which fetch increased realisations. The share of exports diminished to 13% of income in fiscal 2022, from 15-18% earlier, owing to logistic challenges and discontinuation of gross sales to sure African nations corresponding to Uganda and Sudan, the place sure earlier funds are nonetheless caught.
The firm will proceed to export to the UK and Europe and concentrate on rising contributions from these markets. It has additionally began supplying to the US from fiscal 2022. Though there’s a subsidiary in Russia, the enterprise scale is negligible (income of Rs 2-4 crore).
Armed with a modest mortgage of Rs 200,000 beneath the technician-entrepreneurs scheme of The Maharashtra State Finance Corporation and pushed by a dedication to succeed, Sami Khatib managed to get a toehold in a tricky business. The firm’s first formulation plant was arrange at Aurangabad in 1976 for tablets, capsules and liquid orals, adopted by models at Daman and Jammu. The firm exports to 26 nations in southeast Asia, Africa, the Middle East, Russia and the CIS.