Novartis India Snaps Up Pfizer’s Minipress Trademarks in ₹1,250 Crore Strategic Deal
Novartis India Ltd entered into an agreement and acquired the trademarks “Minipress” and “Minipres” along with the relevant intellectual property rights from Pfizer Inc. and Pfizer Products Inc. for a total consideration of ₹1,250 crore.
Board approval for the asset purchase agreement and execution and closing of the trademark assignment deeds was carried out simultaneously, ensuring an immediate acquisition of rights.
The deal is a smart move as it allows Novartis India Ltd to increase its presence in the cardiovascular and urology therapeutic areas. Minipress XL, an extended-release tablet of prazosin prescribed by physicians to alleviate hypertension and BPH-associated urinary symptoms, is the main driving factor in the deal.
As per the industry tracking report of IQVIA MAT, the brand accounted for ₹228.6 crore in revenue while growing at a constant rate of 6.3% over the past four years. It must be noted that the deal comes at the right time, when Pfizer Ltd is carrying out restructuring of its portfolio, in which Minipress XL will no longer be available in the market as its parent company has decided to stop its production.
To ease the domestic operation transition, Pfizer Ltd shall receive a one-time lump sum payment of $13.9 million (approx. ₹131.38 crore) from Pfizer Inc. USA. Novartis India confirmed that the takeover is an arm’s length transaction and there are no relationships between Pfizer and any of its promoters.
In terms of patients and health care professionals using well-recognized therapies, a smooth transition of portfolios would help in avoiding any shortages of medicines. By taking the initiative of buying off the mature and cash-generating brands as multinational pharmaceutical companies concentrate on developing specialty pipelines, Indian pharma companies can ensure successful extension of product life cycles.
