Torrent Pharmaceuticals Ltd is poised to become the fifth-largest pharmaceutical company in India by secondary sales following its acquisition and planned merger with JB Chemicals & Pharmaceuticals Ltd (JB Pharma). Valued at ₹11,917 crore, the transaction ranks among the largest deals in India’s pharmaceutical sector. Currently the seventh-largest player with domestic sales of ₹7,982 crore (IQVIA and SMSRC FY25 data), Torrent is set to leapfrog into the top five with a significant market share gain.
Torrent Acquires Majority Stake in JB Pharma
The Ahmedabad-based drugmaker has signed a definitive agreement to acquire a 46.39% stake in JB Pharma at ₹1,600 per share in cash. As a result of this strategic move, Torrent will initiate a mandatory tender offer for an additional 26% stake at ₹1,639.18 per share.
Additionally, Torrent intends to purchase up to 2.8% equity from JB Pharma employees at the same rate offered to private equity firm KKR, which is exiting its investment in the company.
Market Share and Prescription Rankings Set to Surge
Post-acquisition, Torrent Pharma’s domestic market share will rise from 3.4% to 4.6%, translating to ₹10,731 crore in sales and securing its position as India’s fifth-largest pharma firm by secondary sales. In terms of prescriptions, the combined entity will hold the fourth spot, with over 4.93 lakh prescriptions, according to IQVIA and SMSRC FY25 estimates. The deal will create a pharmaceutical powerhouse with consolidated revenues exceeding ₹15,000 crore and EBITDA surpassing ₹4,800 crore, based on FY25 pro forma figures.
Strengthening Core Therapeutic Segments
“This strategic combination significantly strengthens our presence in high-growth therapeutic areas such as cardiology and gastroenterology, while enhancing our brand equity and operational synergies,” a statement released from Torrent Pharma informed. JB Pharma brings strong domestic growth and a solid global footprint spanning 40 countries. Over FY21–FY25, the company delivered a robust 18% CAGR in revenue and EBITDA. Its India business contributes 58% to total revenue, with six brands in the IPM Top 300 and three brands ranked in the Top 25 cardiology segment.
Complementary Global Presence and Future Outlook
Torrent has diversified its international operations across key markets in the US, Brazil, and Germany. Between FY21 and FY25, it posted a 10% CAGR in revenue, highlighting its consistent global performance.
Merger Process and Regulatory Approvals
Following the acquisition, Torrent will become the surviving listed entity post-merger. The merger process is subject to multiple regulatory approvals, including those from the Competition Commission of India (CCI), Securities and Exchange Board of India (SEBI), stock exchanges, shareholders, and the National Company Law Tribunal (NCLT). As reported by moneycontrol.com, Torrent estimates that the entire process will take approximately 15–18 months to complete.
