GlaxoSmithKline Pharmaceuticals has decided to sell its entire stake in Meghdoot Chemicals, its subsidiary, to Maneesh Pharmaceuticals for an undisclosed amount.
This is line with the pharma major's decision to reduce the complexity of legal entities in India. As part of its strategy to rationalise its manufacturing activity, it has already carried out a huge voluntary retirement scheme at its Worli unit in Mumbai and scaled down operations.
The company said today it has signed a memorandum of understanding on August 12 with Maneesh Pharmaceuticals to sell the equity holding along with the right, title and interest for the manufacturing business. Its plant is located at Kalyan, a Mumbai suburb.
However, the sale will be effective after the petitions filed by GSK and Meghdoot Chemicals for the demerger of the marketing activity of Meghdoot Chemicals into the company are approved by the Bombay High Court, GSK said.
Recently, GSK had decided to demerge Croydon, one of its subsidiaries, as part of the first step in simplifying the legal structures.
Croydon and Meghdoot were part of the erstwhile Biddle Sawyer group that was acquired by GSK in 1997-98. Meghdoot had sales of Rs 2.2 crore.
The company's main focus will be in ensuring that the pharma giant's facilities are viable. Some time back, the company decided to shut down the manufacturing operations at its Worli unit and reviewing the viability of its Gujarat unit.
