Piramal Healthcare Limited today said that it has completed the sale of its domestic formulations business to Abbott Labs.
Piramal Healthcare Limited had entered into a definitive agreement with Abbott for sale of its domestic formulations business (including its Mass Market Branded Formulations Business) along with its manufacturing facility at Baddi, Himachal Pradesh. The shareholders of Piramal Healthcare had approved this sale with an overwhelming majority on June 25, 2010 by a postal ballot process.
The transaction has today been closed and completed and Piramal Healthcare has received the initial consideration amount of Rs.10,271 crore after adjustment.
Piramal Healthcare retains the custom manufacturing, critical care, Over-the-counter consumer products, active pharmaceutical ingredients, vitamins & fine chemicals, diagnostic medical devices & Equipments and clinical research services businesses. In addition, Piramal will continue to pursue novel drug discovery and research being carried on by its affiliate company, ‘Piramal Life Sciences Limited.’
Commenting on the completion of the sale, Ajay Piramal, Chairman, Piramal Group said, “This is an important milestone in Piramal Healthcare’s journey. We are happy to see our domestic formulations business that we nurtured for 22 years, now become part of a value driven company which assumes a leadership position in India. Our Pharma Solutions (CRAMS) and the Critical Care businesses build on the strengths of Indian research, development and manufacturing excellence, while providing world-class products and services across the globe. Our OTC business with a strong brand portfolio is poised to capitalize on the Indian consumer healthcare segment.”