Glenmark offloads its Gynaecology business for Rs 115 crore
In an attempt to cut down its debt, Glenmark Pharmaceuticals on Tuesday sold its India and Nepal gynaecology business to private equity
In an attempt to cut down its debt, Glenmark Pharmaceuticals on Tuesday sold its India and Nepal gynaecology business to private equity (PE) firm True North backed Integrace Pharma for Rs115 crore. The transaction of the sale of the business will be completed by March 31, 2020. The business accounts for less than 1 per cent of Glenmark's total revenue on a standalone basis.
Intergrace Pharma will acquire four products of the portfolio that includes products like Dubagest, Mumfer and Fenza. These three products currently have sales of Rs60 crore and are growing by 15%.
The dynamic business has been sold two years after the company sold its orthopaedic business to the same company.
Despite investing in the Research and Development (R&D) and US markets, the debt on the drugmaker has inflated in their books forcing them to look towards ways to trim down the burden via disinvestments of the non-core segments.
Glenmark's India business, however, has been growing due to new launches in the diabetes segment. It recorded sales worth Rs3,239 crore in 2019 with a 9% growth.
Glenmark Pharmaceuticals is a global innovative pharmaceutical company with operations in more than 50 countries primarily focused in the areas of oncology, respiratory and dermatology.