Hetero buys Lyka JV pie

Lyka Hetero Healthcare was a 51:49 JV between Lyka Labs and Hetero Drugs.

Hetero Drugs, the Hyderabad based pharma company, has bought over its joint venture partner's entire holding in Lyka Hetero Healthcare for an undisclosed sum.

Lyka Hetero Healthcare was a 51:49 joint venture between the N I Gandhi-promoted Lyka Labs and Hetero Drugs.

The Mumbai-based investment banker First Call India, advisors in the deal, had valued Lyka Hetero Healthcare's corporate enterprise value at Rs 49 crore.

Lyka Labs sources said the company would invest the proceeds of the disinvestment of Lyka Hetero Healthcare in new avenues in the domestic market. Lyka Labs floated the joint venture with Hetero Drugs to market its products in the domestic market a couple of years ago.

The Lyka had also tied up with BDR International to market its products overseas. Lyka BDR International is a 50:50 partnership with a working capital of Rs 10 crore.

Under the joint venture, Lyka's pharma formulations for human consumption, primarily antibiotics, will be registered in its export markets by the new company. Lyka currently exports penicillin, cephalosporin, aminoglycoside etc.