Sun Pharma sells divisions of Ranbaxy to Strides Arcolab

The Economic Times reports that Sun Pharmaceutical Industries Ltd is selling erstwhile Ranbaxy's two divisions in central nervous system (CNS) segment in India to Strides Arcolab for Rs 165 crore. Sun Pharma and Strides have entered into a definitive agreement related to erstwhile Ranbaxy's 'Solus' and 'Solus Care' divisions operating in the central nervous system (CNS) segment in India, the company said in a statement.  The agreement involves transfer of these two marketing divisions, along with employees to Strides for a consideration of Rs 165 crore, it added.

Commenting on the development, Sun Pharma CEO-India Business Abhay Gandhi said, "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".

Strides India President (Brands) Subroto Banerjee said, the acquisition of Solus and Solus Care divisions is of strategic significance to the growth of the company's 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," he said, adding the product portfolio of Strides and these divisions will strategically complement each other very well. "The speciality nature of CNS products makes brand equity and customer relationships, key determinants of success. The Solus and Solus Care divisions readily qualify for both these parameters," Banerjee said.

Read more at:

http://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/sun-pharma-sells-divisions-of-ranbaxy-to-strides-arcolab-for-rs-165-crore/articleshow/49024217.cms