Ajay Piramal-led Piramal Enterprises Ltd's Canadian subsidiary has sold its first-line cartilage repair product -- BST-CarGel -- to Smith & Nephew Plc, a UK-based medical technology company.
The financial details of the deal were not disclosed but Piramal Enterprises said that the transaction will not have a material impact on it.
“Through this transaction, an affiliate of Smith and Nephew Plc will acquire ownership of all product and intellectual property assets related to BST-CarGel,” Piramal Enterprises said in a statement.
BST-CarGel, made by Piramal Healthcare (Canada) Ltd, is a first-line cartilage repair product used along with microfracture and other bone marrow stimulation techniques for the initial treatment of most sizes of focal cartilage tears.
The product is approved for use in a number of countries including Australia, Canada and most of Europe, Smith & Nephew said in a separate statement.
Although Piramal Enterprises retains its exposure to healthcare as a sector, it is now more associated with financial services, including investments in infrastructure and real estate sectors after selling its key domestic formulations business to Abbott in a multi-billion dollar deal in 2010.
However, in the recent past it has been making acquisitions to expand its presence in the over-the-counter (OTC) business.
In December, the company acquired five OTC brands from global drug giant Merck for Rs 92 crore (about $14 million), just a little a month after it acquired baby-care brand Little's for an undisclosed amount.
Piramal Enterprises entered the OTC market with the acquisition of Saridon from Roche Holding AG and Lacto Calamine from Duphar Interfran Ltd in the early 1990s.
Last week it announced its decision to raise up to Rs 500 crore through issue of secured non-convertible debentures (NCDs).