Morepen Laboratories is in advanced discussions to sell its over the counter (OTC) business to Piramal Enterprises.
The firm has hired consulting firm Deloitte to find buyers for its OTC business, according to separate media reports.
However, in a letter to stock exchanges, Morepan denied the development and said no such negotiation has taken place.
Piramal Enterprises and Morepen did not respond to requests for comments.
In April 2016, Morepen said that it would enter the health services business through its Nation on Wellness (NOW) centre to promote cardiac health through non-invasive external counter pulsation technology, The Business Line reported, citing the firm’s CEO Varun Suri.
Morepen has products such as Burnol and Lemolate, according to its website. It also makes medical devices such as glucometers and thermometers.
Should the deal go through, this would be Piramal Enterprises’ third brand portfolio acquisition in recent times.
Piramal Enterprises acquired four brands from Pfizer for $16.5 million in December 2015. It also bought five OTC brands from Merck for $14 million in May 2016.
The firm’s executive director Nandini Piramal previously said the company would be acquisitive in order to become a top three player in the OTC market by 2020.
The firm previously acquired the contraceptive drug i-pill from Cipla in 2010 for Rs 95 crore. In November 2013, Piramal acquired OTC drug Caladryl, meant for skin care, from Valeant Pharmaceuticals.
The firm had acquired Saridon from Roche Holding and Lacto Calamine from Duphar Interfran in the early 1990s, which helped it enter the OTC business.
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