Sun Pharmaceutical Industries and Strides Arcolab announced that they have entered into a definitive agreement to transfer erstwhile Ranbaxy Laboratories’ ‘Solus’ and ‘Solus Care’ marketing divisions operating in the central nervous system (CNS) segment in India along with their employees to Strides for a consideration of Rs 165 crore.
As per IMS July 2015 MAT report, all the products of these two divisions together accounted for approximately Rs 92 crore in sales.
In April 2014, Sun Pharma had acquired Ranbaxy Laboratories in $4 billion landmark transaction.
Why Sun divest Ranbaxy’s Solus and solus care?
Post successful completion of Ranbaxy’s merger the Sun had an opportunity to assess the entire portfolio of its India Business. Sun Pharma has own neuro psychiatry division and doing well in Indian market. Whereas Ranbaxy also had Neuro Division Solus and Solus Care. Probably that is the reason for divestment of the Solus and Solus Care by Sun Pharma.
This deal will help Strides to consolidate its CNS business in India.
The transaction is subject to approval from the Competition Commission of India and other customary closing conditions.