Deal is of strategic significance to growth of Strides branded business in India
India's largest drugmaker Sun Pharmaceutical Industries is to sell to Bangalore-based Strides Arcolab, the central nervous systems divisions that the company acquired when it bought Ranbaxy last year for US$4bn.
As part of the deal, Sun Pharma will sell two divisions of Ranbaxy – Solus and Solus Care – for Rs1.65bn. Around 150–200 employees will transfer to Strides Arcolab. To July 2015, the two divisions reported sales of approximately Rs.920m.
Commenting on the transaction, Abhay Gandhi, CEO, India Business at Sun Pharma, said: 'Post successful completion of Ranbaxy’s merger we had an opportunity to assess the entire portfolio of our 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. The divestment will help these divisions, its customers and the team.'
Subroto Banerjee, President, Brands, India at Strides added: 'The acquisition of Solus and Solus Care divisions is of strategic significance to the growth of our branded business in India.'
The deal 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.