Panacea Biotec Pharma Limited’s Acquisition of Power Gummies
Panacea Biotec Pharma Limited is preparing to acquire the nutraceutical brand Power Gummies, as per insider sources. The acquisition is reportedly nearing finalization, with Panacea Biotec set to take ownership of the complete stake in Power Gummies, which includes the brand’s patents and trademarks.
Documents examined by Startup Superb indicate that the company is divesting specific assets to Panacea Biotec Pharma Limited, with the proceeds aimed primarily at addressing debt obligations.
About Power Gummies
Established in 2018, Power Gummies has emerged as a health and wellness brand designed for modern lifestyles. The company boasts unique formulations that have undergone WHO-standard clinical trials, supported by robust research and development alongside sustainable manufacturing practices. The product range includes categories such as hair, skin, sleep, immunity, stamina, and gut health.
Details of the Deal
Insiders suggest that the negotiations are nearing completion, with all terms and conditions agreed upon. In response to inquiries from Startup Superb, Divij Bajaj, the founder and CEO of Power Gummies, mentioned that, “As part of the business strategic realignment process, portfolios are continuously reviewed. To fulfil this strategy, brands may be divested to a notable pharmaceutical company to enhance customer satisfaction. Evaluations are ongoing.”
Queries directed to Panacea Biotec remained unanswered at the time of publishing.
Funding and Financial Performance
According to various sources from the startup data intelligence platform, Power Gummies has secured approximately Rs 76.6 crore (around $9 million), including a $6 million Series A funding round led by 9Unicorns (now branded 100Unicorns). Furthermore, the company raised Rs 10 crore from the Jaipuria Family Office and Quadrant in December of the previous year.
For the fiscal year concluding in March 2024, Power Gummies reported an operating revenue of Rs 17.4 crore, a decline from Rs 21.1 crore in FY23. Additionally, the net loss expanded to Rs 21 crore compared to Rs 19.1 crore year-on-year.
Panacea Biotec’s Growth Strategy
After divesting its domestic formulations business to Mankind Pharma in 2022 for around Rs 1,900 crore, Panacea Biotec is now focusing on growth through strategic acquisitions. The planned takeover of Power Gummies marks a significant shift towards the nutraceutical and lifestyle wellness sector, expanding the company’s reach beyond its conventional pharmaceutical and vaccine offerings.