Zydus Cadila buys select animal health brands of Zoetis

By Joseph Rai

  • 05 Jan 2016

Drugmaker Cadila Healthcare Ltd, which runs under the brand Zydus Cadila, said on Tuesday it has acquired some animal health brands and manufacturing operations at Haridwar in Uttarakhand from US animal health company Zoetis Inc.

The brands have combined revenue of Rs 171 crore, Ahmedabad-based Zydus said in a stock market disclosure. It didn’t disclose financial details of the deal.

The acquisition, made through the Zydus Animal Health division, will help the company gain access to a wide range of nutrition as well as therapeutic products.

"We believe that this strategic acquisition will strengthen our portfolio of brands and add new dimensions to our growth in the animal health business," said Pankaj Patel, chairman and managing director at Zydus Cadila.

The Haridwar facility of Zoetis, which was spun off from Pfizer Inc in 2013, makes tablets, liquid orals and injectables. The plant, approved by the World Health Organization, is likely to help Zydus boost its exports and institutional businesses.

Zydus makes a range of healthcare therapies. It employs about 16,500 people and aims to become a research-based pharmaceutical company by 2020.

The deal is at least the second transaction in the animal health segment in recent months. Novartis India recently completed a transaction to sell its animal health business to Elanco India, an affiliate of Eli Lilly. In April 2014, Novartis had agreed to sell its global animal health business to Eli Lilly and Co for about $5.4 billion.