India’s Sun Pharma sells two of Ranbaxy’s CNS units to Strides Arcolab Ltd for $25 million
Monday, September 21, 2015
Sun Pharmaceutical Industries Ltd., India’s largest drug maker, has entered into a definitive agreement with Strides Arcolab Ltd. to sell the erstwhile Ranbaxy’s marketing divisions ‘Solus’ and ‘Solus Care’ operating in the central nervous system (CNS) segment in India for Rs.165 crore.
Sun Pharma had last year announced the acquisition of Ranbaxy Laboratories for $4 billion.
The agreement with Strides involves transfer of the two marketing divisions along with employees. Products from the two units accounted for about Rs.92 crore in sales last year.
Sun Pharma said it would ensure that the interests of its employees working in Solus and Solus Care divisions were not compromised during the divestment process.
“The agreement with Strides is part of our strategy to firmly consolidate our CNS business in India,” Abhay Gandhi, CEO – India Business, Sun Pharma said in a statement.
“Post completion of Ranbaxy’s merger we had an opportunity to assess the entire portfolio of our India business. We have evaluated each and every therapy segment that we are present in and how these businesses can grow going forward. Based on this evaluation, we firmly believe that the potential of Solus and Solus Care divisions can be greatly enhanced with the focus that Strides will put in growing them. The divestment will help these divisions, its customers and the team,” Mr. Gandhi added.
For Strides, the acquisition of the two divisions is of strategic significance to the growth of its branded business in India said Subroto Banerjee, President, Brands India, Strides.
“The rich product portfolio and capable teams of these two divisions will help us establish a strong footing in the fast growing CNS market of India. The product portfolio of Strides and these divisions will strategically complement each other very well,” Mr. Banerjee said. “We look forward to welcoming the employees of these divisions to the Strides family and working together with the team members in future growth path of Strides,” he said
The transaction is subject to approval from the Competition Commission of India and other customary closing conditions.
“All other terms and conditions of the transaction are confidential,” both the companies said in a joint filing to the stock exchanges.
thehindu.com
