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Shares of global drugmaker Marksans Pharma gained as much as 12 percent in early trading on Wednesday after the company announced plans to double its manufacturing footprint to bolster growth. The company made this announcement minutes before the market closing on Tuesday.

As per the plan, the company has entered into a business transfer agreement with Tevapharm India Pvt. Ltd. to acquire its manufacturing and supply of bulk pharmaceutical formulations business in Goa on a slump sale basis. The deal is being done for undisclosed cash consideration. Finalisation of the transaction may take place before April 1, 2023.

Even after the deal, Teva's affiliate Watson Pharma will continue to own and operate its other manufacturing unit in Goa. Marksans Pharma will also retain employees of the site in question.

Marksans will continue to supply Teva's affiliates with certain products until the end of the financial year as part of the agreement. This can also be extended further with mutual consent.

The deal will enable Marksans to double its existing capacity in India from the current 8 billion units per annum. The company intends to manufacture tablets, hard and soft gel capsules, ointments, gummies, and creams from the acquired capacity. The new capacity will be added to the three existing manufacturing sites in the UK, the US, and India.

Spread across 50,000 square meters, the manufacturing site has approvals to manufacture products from the European Union, Health Canada, and the Japanese Health Authority.

Marksans promoter and Managing Director Mark Saldhana believes the deal will supplement the company's innovative products portfolio and drive market share gains.

Teva Pharma is a global leader in generic and specialty medicines with a portfolio of over 3,500 products, catering to over 200 million people daily.

Shares of Marksans Pharma are currently trading 8.3 percent higher at Rs 50.40.

First Published:Oct 12, 2022 11:04 AM IST