Ranbaxy puts Ireland unit on the block

Ranbaxy Laboratories Ltd has put its manufacturing unit in Ireland on the block. The sale is expected to fetch the company ¤25-35 million.

The move is aimed at consolidating and scaling up its production for Europe and the CIS countries. The company is believed to have roped in Merrill Lynch International to find a suitor for the unit.

Ranbaxy's Ireland unit has two blocks, where it produces general solid dose products and semi-synthetic penicillin.

A company spokesperson declined to give details of the deal or the prospective buyers.

The generic pharma player intends to concentrate its manufacturing activities in the recently acquired Terapia in Romania and hopes to leverage substantial cost efficiencies by making it a strategic hub to service the rest of Europe.

Ranbaxy had generated revenues of Euro 12 million from the Ireland unit last year. It currently employs about 80-90 people and holds over 100 marketing licences issued by the Medicines and Healthcare products Regulatory Agency (MHRA) for sale of products in the UK and over 50 marketing licences issued by the Irish Medicine Board for sale in Ireland.