Elder Pharmaceuticals Ltd, which is selling its domestic formulation business to Torrent Pharmaceuticals Ltd, will focus on its anti-infectives unit, exports and increasing business from overseas subsidiaries in Europe going forward, the company has disclosed.
“Subsequent to the proposed transaction, the company will continue to develop new products in anti-infectives and injectables verticals and other therapeutic segments to build a strong business for a better prospective,” the company said in a postal ballot notice for a shareholders nod for the transaction.
These segments would make a big part of the export business of the company, which is looking to increase its reach in the global markets. Apart from that, Elder will focus on growing its business for its UK- and Bulgaria-based subsidiaries NeutraHealth Ltd and Elder Biomeda EAD. NeutraHealth has a large distribution network in the UK market and is a vitamin and supplement supplier. Elder acquired NeutraHealth last year.
Elder also plans to utilise its plant capacities through contract manufacturing for other firms besides own production for domestic and international markets. Further, post sell-off of the formulations business, the company will explore entering new therapeutic areas and accelerate development of new products through R&D.
Last month, Elder struck a deal to sell its formulation business in India and Nepal to Ahmedabad-based Torrent for Rs 2,004 crore. In this transaction, Elder is selling over 30 brands to Torrent, which included women’s healthcare, pain management, wound care and nutraceuticals.
The pending transaction, which involved transfer of employees engaged in sales, marketing and operations of the Indian business, includes the clause that Elder will continue to manufacture its products and supply them to Torrent for three years.
It had decided to sell the key business to reduce its debt.
(Edited by Joby Puthuparampil Johnson)
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