Torrent Pharmaceuticals Expands into CDMO with JB Pharma Merger

• Torrent Pharmaceuticals has agreed to acquire a controlling stake in JB Pharma from KKR for INR 25,689 crores($3.08 billion USD), followed by a full merger of the two companies.

• The transaction marks Torrent’s strategic entry into the CDMO segment and strengthens its position in India’s pharmaceutical market.

Torrent Pharmaceuticals has entered into definitive agreements to acquire a controlling stake in JB Chemicals and Pharmaceuticals (JB Pharma) from global investment firm KKR at an equity valuation of INR 25,689 crores($3.08 billion USD). The transaction will be followed by a full merger of the two companies.

The deal will unfold in two phases. First, Torrent will purchase a 46.39% equity stake for INR 11,917 crores through a share purchase agreement. This will be followed by a mandatory open offer to acquire up to 26% of JB Pharma’s shares from public shareholders, and an additional 2.80% from certain employees. In the second phase, the companies will merge, with JB Pharma shareholders receiving 51 Torrent shares for every 100 JB Pharma shares.

The acquisition brings Torrent access to JB Pharma’s fast-growing domestic business and its pipeline of chronic care brands, while also opening entry into new therapeutic areas, such as ophthalmology. Importantly, the deal introduces Torrent to international contract manufacturing and CDMO capabilities.

Samir Mehta, Executive Chairman of Torrent, said the merger would “build on the platform for the future,” enabling scale in both revenue and profitability. JB Pharma’s CEO Nikhil Chopra noted that the combination of both companies’ strengths would enhance healthcare access across markets.

The deal is subject to standard regulatory approvals, including those from SEBI, CCI, and the NCLT.