Debt-ridden pharma firm Wockhardt today said its estimated Rs 650-crore deal to sell nutritional business to global health company Abbott has been terminated, eight months after announcing an agreement.
Wockhardt, in a statement, said that the company and Abbott have "jointly decided to terminate the nutritional business agreement signed by them in July 2009."
The company, however, did not specify the reasons for terminating the deal. Wockhardt's nutrition category comprises brands like Farex, Dexolac, Nusobee infant formulas and Protinex.
In July 2009, Wockhardt had announced an agreement with global health firm Abbott to sell off its nutrition businesses as it looked to raise funds to repay debt. While the value of the deal was not officially announced, it was estimated to be worth around $130 million or about Rs 650 crore.
Wockhardt, which is facing debts to the tune of Rs 3,700 crore, had announced plans to raise Rs 790 crore through divestment of its non-core business by 2015 as part of its corporate debt restructuring programme (CDR) programme.
Shares of Wockhardt were trading at Rs 142.60 on BSE, up 2.81 per cent from previous close.