Sun Pharma sells two Ranbaxy units to Strides Arcolab
21 September 2015
Sun Pharmaceutical Industries Ltd has sold two divisions of erstwhile Ranbaxy laboratories - Solus and Solus Care operating in the central nervous system segment – to Strides Arcolab Ltd, in a deal worth Rs165 crore.
The two companies have entered into a definitive agreement for transfer of these two marketing divisions, along with employees to Strides.
During the divestment process, Sun Pharma said the transaction will not in any way undermine the interests of employees working in Solus and Solus Care divisions.
''The agreement with Strides is part of our strategy to firmly consolidate our CNS business in India. Post successful 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,'' Abhay Gandhi, CEO – India Business, Sun Pharma, said.
''The acquisition of Solus and Solus Care divisions is of strategic significance to the growth of our branded business in India. 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," Subroto Banerjee, president – brands, India of Strides, said.
He added, "The product portfolio of Strides and these divisions will strategically complement each other very well. The specialty nature of CNS products makes brand equity and customer relationships, key determinants of success. The Solus and Solus Care divisions readily qualify for both these parameters. 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.''
As per IMS July 2015 MAT report, all the products of these two divisions together accounted for approximately Rs92 crore in sales.
The transaction is subject to approval from the Competition Commission of India and other customary closing conditions, Sun Pharma said, adding that all other terms and conditions of the transaction are confidential.
Sun Pharma, India's largest pharmaceutical firm, has 48 manufacturing facilities spread across 5 continents, R&D centres across the globe and a multi-cultural workforce comprising over 50 nationalities.
It had consolidated revenues for 12 months ended March 2015 of approximately $4.5 billion, of which US contributed $2.2 billion.