Shimla: Mumbai based Kilitch Drugs intends to sell its Paonta Sahib pharmaceutical plant in Himachal Pradesh to US based Akorn Inc for Rs 188 Crore, Business Lines reports.
Kilitch happens to one of the largest manufacturers of Antibacterial Parenteral formulations and is also one of the largest producers of Sterile Liquid formulations in small volumes in India.
The Poanta Sahib plant is involved in research, development, manufacturing and marketing of generic pharmaceutical formulation products.
Quoting Mukund Mehta, Managing Director Kilitch Drugs, the media report says that the company would also transfer certain additional products that are currently being manufactured at its Mumbai plant to Akorn for Rs 11.75 crore.
Akorn Inc, a niche generic pharmaceutical company, will acquire the Kilitch assets on a slump sale basis through a wholly-owned subsidiary incorporated in India.
Akorn has manufacturing facilities located in Decatur, Illinois and Somerset, New Jersey where the company manufactures ophthalmic and injectable pharmaceuticals.
Mehta said the transaction signifies the global potential and competitive advantage of Indian companies in the field of pharmaceutical research and manufacturing.
â€œThe Paonta Sahib business has strong product development capability and most modern manufacturing facility that Akorn will be able to leverage and cater to customers in India and global markets,â€ he added.
KPMG Corporate Finance has acted as an exclusive financial advisor to Kilitch in the transaction.
The BSE-listed Kilitch Drugs has two formulation manufacturing facilities in Navi Mumbai and Paonta Sahib and markets Ophthalmology range of products in India and certain overseas markets.
Kilitch will continue to focus on its manufacturing plant at Navi Mumbai and market eye care products both in India and abroad, said Mr Mehta.