The Ahmedabad-based Intas Pharmaceuticals is understood to have has signed a memorandum of understanding with ICI India to buy its pharmaceutical business for a consideration of Rs 70 crore.
A formal announcement in this regard is expected after January 11. The final agreement is expected to be signed in the next few days, merchant banking sources close to the deal said.
ICI director Daljit Singh said, "We are in discussion with a number of parties and for reasons of confidentiality we cannot divulge the names. We will make the appropriate announcements as soon as the deal works out."
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As per the deal, Intas Pharmaceuticals will acquire the pharma manufacturing facility of ICI (at Ennore near Chennai), brands and the marketing setup. This facility is designed as per ICI Plc UK's standards. Andersen is believed to have advised Intas on structuring the deal, sources added.
The pharmaceutical business, analysts say, accounts for roughly six to seven per cent of ICI India's sales. The company operates in the cardiovascular, anaesthetics and antiseptics segment. Most products are original ICI research products.
The key brands include Tenormin (atenolol) used in the treatment of high blood pressure, Tenoclor (atenolol plus chlorthalidene), a combination drug of Tenormin and a diuretic, Tetmosol (monosulfiram) for skin diseases, Nolvadex (tamoxifen) for breast cancer and Aerrane (isoflurine) which is an anaesthetic under license from Baxter Healthcare.
About 25 per cent of the company's pharma business comes from exports comprising of anaesthetics and anti-fungal skin products. Among the other bidders for ICI's pharmaceutical business were US Vitamins, Pharmacia India and Nicholas Piramal.
The pharmaceutical business has remained a part of ICI India's portfolio even after the world-wide split of ICI Plc in the early 1990s, when the drugs business in most countries had been transferred to Zeneca Plc and then Astra Zeneca Plc.