By 15 March, 2013
Parenteral Drugs to sell Goa unit to Fresenius Kabi for $36.8M

Public-listed Parenteral Drugs India Ltd has entered an agreement with Fresenius Kabi India Pvt Ltd to sell one of its domestic pharmaceutical manufacturing units located in Goa for Rs 200 crore ($36.78 million).

The plant, which was under its subsidiary Goa Formulations Ltd, will be sold to the Indian arm of the German healthcare firm. Incorporated in 2005, Goa Formulations manufactures drugs such as intravenous fluids and became a subsidiary of Parenteral Drugs in November 2008.

Goa Formulations had total assets of Rs 136 crore as of March 31, 2012, and clocked total revenues of Rs 20.31 crore during FY12.

Besides the Goa unit, Parenteral Drugs has manufacturing units in Solan (Himachal Pradesh), Indore (Madhya Pradesh) and Jalandhar (Punjab). It also has operations in Mauritius, Nairobi (Kenya) and Kazakhstan.

Systematix Capital Services acted as the sole advisor on this transaction.

Parenteral Drugs’ scrip rose 1.1 per cent and was quoting at Rs 120 a share in mid-day trades on the BSE in a weak Mumbai market on Friday. At this price, the firm has a market cap of Rs 310 crore.

The firm had revenues of Rs 332 crore with net loss of Rs 53.3 crore for the year ended March 31, 2012.

Fresenius Kabi India is a fully owned subsidiary of Fresenius Kabi AG, a part of the Fresenius Health Care Group which is headquartered in Bad Homburg, Germany. The firm’s product portfolio includes intravenous generic drugs, infusion therapies and clinical nutrition products, as well as medical devices for administering these products. Within transfusion technologies, Fresenius Kabi offers products for whole blood collection and processing besides transfusion medicine and cell therapies.

The German parent acquired Dabur Pharma five years ago and renamed it Fresenius Kabi Oncology. The entity remains a separate public-listed firm.

The pharma sector recently saw some big deal announcements with Strides Arcolab deciding to sell its injectables unit Agila Specialties to Mylan Inc for $1.6 billion and Cipla making a revised offer to buy out its South African drugs distributor Cipla Medpro in a deal valued at $512 million.

(Edited by Sanghamitra Mandal)

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