Chennai-based Shasun Pharmaceuticals Ltd is selling its stake in veterinary company Alivira Animal Health as post its merger with Strides Arcolab its focus is not on animal health business, as per stock market disclosure.
Strides invested Rs 63 crore in Alivira in 2014 by way of transfer of lease-hold land along with related assets and liabilities by executing a business transfer agreement.
“Considering the proposed merger of the company with Strides and since the animal health business is not the main focus of the merged entity, it is proposed to sell the investment to the other shareholders of Alivira for not less than Rs 75 crore,” it stated.
In 2014, private equity firm Ascent Capital picked up a minority stake in Alivira, which develops, manufactures and sells veterinary products, including APIs and formulations, in the global market.
Alivira, a joint venture between Bangalore-based integrated pharma player SeQuent Scientific Ltd and Shasun, allotted 74 lakh equity shares to Shasun in consideration for the transfer of Shasun's Vizag unit and also allotted shares to an entity jointly owned by the two JV partners.
Post this, in 2014 Strides—which had sold its injectable-medicine unit Agila Specialties for $1.65 billion to Mylan—bought drug maker Shasun in an all stock merger for a little over $221 million.
Post the deal, Shasun’s promoters hold 9.14 per cent of the combined firm while Strides promoter Arun Kumar controls 23.7 per cent, part of which is through his majority ownership in SeQuent which owns around 15.8 per cent of Shasun (factoring in convertible securities).
Shasun focuses on manufacturing API ingredients and formulations. In 2014 it acquired the global rights to develop and commercialise Ibuprofen 12-hour extended release OTC tablets as well as associated technology besides rights to Nuprin analgesic trademark from US-based drug maker SCOLR Pharma.
(Edited by Joby Puthuparampil Johnson)