Indian drug major Sun Pharmaceutical Industries Ltd will sell its two divisions operating in the central nervous system (CNS) segment to Strides Arcolab Ltd for Rs.165 crore.
In a statement issued jointly with Strides, Sun Pharma said the two have entered into a definitive agreement related to Solus and Solus Care divisions of erstwhile Ranbaxy.
According to the statement, Sun Pharma will transfer the two marketing divisions along with the employees to Strides.
The two divisions have been accounting for a revenue of Rs.92 crore.
Commenting on the transaction, Abhay Gandhi, CEO - India Business, Sun Pharma said: "The agreement with Strides is part of our strategy to firmly consolidate our CNS business in India."
Also Read
According to him, post successful completion of Ranbaxy's merger the company had an opportunity to assess the entire portfolio of its India business.
"We have evaluated each and every therapy segment that we are present in and how these businesses can grow going forward. Based on this evaluation, we firmly believe that the potential of Solus and Solus Care divisions can be greatly enhanced with the focus that Strides will put in growing them," he was quoted as saying in the statement.
According to Subroto Banerjee, president-Brands, India of Strides, the acquisition of the two divisions will enable growth of the company's branded business in India.
The transaction is subject to approval from the Competition Commission of India and other customary closing conditions. All other terms and conditions of the transaction are confidential, the two companies said.
