Mumbai-based RPG Life Sciences Ltd, an integrated pharmaceutical firm operating in the domestic and international markets in the branded formulations, global generics, synthetic and fermentation APIs space, has decided to offload its biotech unit to Intas Pharmaceuticals Ltd for Rs 25 crore (over $3.7 million).
RPG Life Sciences, part of the Harsh Goenka-led RPG Group, has received approval from its board of directors for the sale and transfer of the unit on a slump sale basis to Intas Pharma, as per a stock market disclosure.
“It has been our strategy to focus on our core business (formulations) and the sale of the biotech unit to Intas Pharma will help us achieve this goal and create value for stakeholders in the long-term,” said CT Renganathan, managing director, RPG Life Sciences.
The proceeds from the sale would be used to expand the formulations business, which contributes about 60 per cent to company's overall sales, he said.
RPG Life Sciences manufactures and markets pharmaceutical products. With the latest transaction, it will exit the biotech business.
The company had appointed Renganathan as managing directorlast year. He had previously worked with GlaxoSmithKline Pharmaceuticals, Boston Scientific and Eli Lilly, among others.
In March 2015, Ahmedabad-based Intas Pharma had acquired a part of Spanish firm Combino Pharm for an undisclosed amount, to strengthen its business in Europe.
A year earlier, Singapore’s sovereign fund Temasek had bought 10.16 per cent stake in Intas Pharma from PE firm ChrysCapital, for an undisclosed amount by way of a secondary PE deal.
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