Torrent Pharma Signs Agreement To Acquire Three Anti-Diabetics Brand

Torrent Pharmaceuticals Ltd. has signed an agreement with Boehringer Ingelheim International to acquire three anti-diabetes brands: Cospiaq (empagliflozin), Cospiaq Met (empagliflozin + metformin), and Xilingio (empagliflozin + linagliptin).

The acquisition will be completed by March 2025, according to an exchange filing. Torrent has promoted these brands since 2022 under a co-marketing agreement with Boehringer Ingelheim India.

Empagliflozin is an SGLT-2 inhibitor that helps control blood sugar in adults with type 2 diabetes. The market for SGLT-2 inhibitors is worth Rs 3,235 crore and has a growth rate of 25% per year.

“As we continue to strengthen our diabetes care portfolio, we will ensure continued access to the treatment for patients whilst building on our presence in the Oral Anti Diabetic market,” said Aman Mehta, director at Torrent Pharma.

According to the International Diabetes Federation, India has the second-largest number of diabetes patients in the world, with an estimated 74.2 million adults living with diabetes in 2021, according to the filing.

This number is expected to rise to nearly 125 million by 2045.

As per the Advanced Working, Action and Correction System or AWACS data from October 2024, the Indian diabetes medication market is valued at Rs 19,912 crore, growing at a rate of 7.7% per year over the past four years, it said.

The share price of Torrent Pharmaceuticals closed at Rs 3,352.65 per share on the National Stock Exchange, reflecting a decline of 0.31%. In contrast, the benchmark Nifty saw a slight increase of 0.04%.

Over the past 12 months, the stock has decreased by 57.14%, and it has fallen 35.42% year-to-date.

Among the 32 analysts monitoring the company, 19 have assigned a 'buy' rating to the stock, eight recommend a 'hold,' and five have given it a 'sell' rating, according to Bloomberg data. The average 12-month price targets from analysts suggest a potential upside of 6.6%.