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Piramal sells healthcare business to US firm

Mumbai, May 21 (IANS) Piramal Healthcare Friday said it will sell its healthcare solutions business in India, Sri Lanka and Nepal to US-based Abbott for $3.72 billion.

The business involves manufacturing, marketing and sales of branded pharmaceutical products.

The company said in a regulatory filing that it will transfer its manufacturing facilities at Baddi in Himachal Pradesh and rights to around 350 brands and trademarks to Abbott.

‘The sale will also involve the transfer of the employees,’ it added.

Of the total amount, Abbott will pay $2.12 billion on closing of the sale and the remaining $1.6 billion over the next four years.

Piramal healthcare will retain its business of custom manufacturing for third parties, critical care, over the counter products, manufacture and supply of active pharmaceutical ingredients, vitamin, diagnostic medical devices, diagnostic services and clinical research services.

As part of the terms of sale, Piramal and its associates will not engage in the business of generic pharmaceutical products in the finished form in India, nor market or manufacture the products which are the part of the sale in emerging markets.

The deal is expected to be closed in the second half of 2010.

The Piramal Healthcare scrip ruled 2.87 percent higher from its previous close at Rs.586 at the Bombay Stock Exchange Friday. The other group company, Piramal Lifesciences, was also up 4.98 percent at Rs.124.30.

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