Ranbaxy in talks to sell Ireland unit

Ranbaxy Laboratories is in talks with prospective buyers to sell off its manufacturing unit in Ireland to consolidate and build scale in its production for Europe and the Commonwealth of Independent States (CIS).

The generic pharma player intends to concentrate its manufacturing activities in the recently acquired Terapia in Romania for a consideration of $324 million in March this year. It hopes to leverage substantial cost efficiencies from making its Romanian acquisition, a strategic hub to service the rest of the continent.

"The company has decided to divest the manufacturing facility of Ranbaxy Ireland Ltd located in Cashel, Ireland, as a going concern," stated a Ranbaxy release.

Ranbaxy officials refused to divulge the prospective buyers they were in discussion with or the size of the tablet formulation facility.

Along with two low-cost manufacturing facilities producing tablets, capsules, sterile ampoules and liquids, Ranbaxy, through Terapia's acquisition, had gained access to a product basket of 157 marketing authorisations with a strong focus on the fast growing segments of CVS, CNS & musculoskeletal therapeutic segments.