Piramal Enterprises, which sold off its domestic formulations business to Abbott in a multi-billion dollar deal a few years ago and later divested pathology services unit to SRL, has now enter into an agreement to sell its diagnostics equipment trading unit to German firm DiaSys Diagnostics Pvt Ltd for Rs 13 crore ($2.15 million) as per a stock market disclosure.
The firm said it would also be transferring related technology for a consideration of Rs 0.03 crore.
“This business is a trading business, comprising buying selling of diagnostics equipments, serving large pathological laboratories. It does not form part of the core manufacturing activity of the company, nor does it involve any material patented products. It comprises a small portion (about 1 per cent) of the company's consolidated business,” the firm added.
DiaSys Diagnostic Systems is a specialist in the development and manufacturing of diagnostic system solutions. Its product portfolio comprises more than 90 clinical chemistry and immunoturbidimetric reagents for routine and special diagnostics including suitable calibrators and controls.
Holzheim-headquartered DiaSys is an owner-managed medium-sized medical technology company with locations in Europe, Asia and Latin America. We develop and manufacture tests and systems for the diagnostic laboratory and near-patient testing (POCT).
As per its website it does not have a presence in India and the deal will provide an entry for the firm in the market. It recently established sales offices in Brazil and Singapore to expand its business to new geographies.
For Piramal Enterprises this would mark another disengagement from healthcare as a business having recently decided to shut down its Mumbai-based R&D unit which would in effect bring to an end its early stage drug discovery business.
Although Piramal Enterprises retains its exposure to healthcare as a sector, after selling the key pharma business, it is now more associated with financial services, including investments in infrastructure and real estate sectors.
In an unrelated development, the firm is forming a joint venture with Navin Fluorine International Limited, an Arvind Mafatlal Group company, to develop, manufacture and sell specialty fluorochemicals with a focus on applications in healthcare.
As per the agreement, Piramal Enterprises will hold 51 per cent of the equity share capital of the proposed joint venture company, whereas the remaining 49 per cent will be held by Navin. In the first phase of development, the JV is expected to invest around Rs 120 crore in India for this project.