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Sun Pharma sells Ranbaxy divisions to Strides Arcolab for Rs165 crore
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Photo: Hemant Mishra/Mint

Mumbai: Sun Pharmaceutical Industries Ltd. on Saturday said the company has signed agreement with Strides Arcolab Ltd. to sell central nervous system (CNS) portfolio of erstwhile Ranbaxy Laboratories Ltd for Rs165 crore.

The agreement involves transfer of two marketing divisions — ‘Solus’ and ‘Solus Care’, along with employees to Strides, statement from Sun Pharma said.

As per IMS July 2015 MAT report, all the products of these two divisions together accounted for approximately Rs92 crore in sales.

“The agreement with Strides is part of our strategy to firmly consolidate our CNS business in India. 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,” said Abhay Gandhi, chief executive officer — India Business, Sun Pharma.

“The acquisition of Solus and Solus Care divisions is of strategic significance to the growth of our branded business in India. The rich product portfolio and capable teams of these two divisions will help us establish a strong footing in the fast growing CNS market of India,” said Subroto Banerjee, president – Brands, India of Strides Arcolab.

In May, Strides Arcolab had acquired Australian generics business of Aspen Pharmacare Holdings Ltd for Australian $380 million.

Strides Arcolab had also acquired 74% stake in the domestic business of Bafna Pharmaceuticals Ltd for Rs48 crore in July last year. The deal includes Bafna’s flagship haemoglobin tablet Raricap, which fetched Rs20 crore sales in fiscal year 2014. Bafna’s domestic business was valued at Rs65 crore for the deal.

In September 2014, Strides had agreed to buy rival Shasun Pharmaceuticals Ltd in an all-stock transaction valued at about Rs1,200 crore.

Sun Pharma had completed the $3.2 billion acquisition of Ranbaxy Laboratories in March to create the world’s fifth-biggest generic pharmaceutical company by revenue. The closure of the deal, announced on 6 April last year, created an entity with almost Rs30,000 crore in combined annual revenue and Rs2.5 trillion in market value.

Sun’s consolidated revenue for 12 months ending March 2015 is approximately $ 4.5 billion, of which US market contributes $ 2.2 billion.

On Wednesday, Sun had announced acquisition of US-based InSite Vision Inc. by one of its subsidiaries in a deal worth $48 million (about Rs300 crore).

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