Indian pharma giant Nicholas Piramal has acquired the anti-spasmodic Anafortan and antibiotic CEFI brands from Khandelwal Laboratories Pvt Ltd (K-Lab) for a total consideration of Rs116 crore.

As part of the agreement, Khandelwal Laboratories will allow Nicholas Piramal the use of certain patents with non-compete assurances for the two cefixime- and camylofin-based drugs.

The two drug groups generated revenues of Rs49.1 crore, with operating margins of Rs20.7 crore for the financial year ended March 31, 2008, Nicholas Piramal stated.

"CEFI and Anafortan offer unique therapeutic value to patients, which we hope to offer to patients across India with our national sales and distribution network," Nicholas Piramal chairman Ajay Piramal said in a statement.

CEFI (cefixime) is a third generation cephalosporin antibiotic and is marketed in nine dosage forms, which are based on extended release and once-a-day drug delivery systems.

The CEFI group had revenues of Rs26.2 crore for the year ended March 31, 2008, according to Nicholas Piramal.
 
According to data from market research agency ORG-IMS, the cefixime-based drugs segment is worth Rs624.6 crore and is growing at 25.4 per cent annually. 
 
Anafortan (Camylofin) is an anti-spasmodic drug for treating stomach cramps and ulcers. K-Lab's Anafortan group consists of six Camylofin-based formulations in pure and combination forms.

The drug had revenues of Rs22.9 crore for the year ended March 31, 2008. The Camylofin-based drugs market grew at 13.5 per cent last year. 
Nicholas Piramal is in the process of revamping its corporate identity by restructuring its divisions to grow in the domestic market. The company's performance has suffered in the domestic market, in recent months, due to a shortage of codeine, the principal ingredient for its flagship cough syrup brand Phensedyl.

Founded in 1945 by the former sheriff of Mumbai, the late Ramprasadji  Khandelwal, Khandelwal Laboratories manufactures pharmaceutical formulations, and is engaged in biotechnology and research.

Pioneers and leaders in anti-cancer, chemotherapy, muscle relexant and anthelmintic formulations, the company employs around 850 people in various departments such as marketing, manufacturing, biotechnology, R&D, Information Technology & other services.