Piramal Healthcare on Wednesday said it has completed the sale of its domestic formulations business to US-based Abbott Healthcare and has received Rs 10,271 crore (Rs 102.71 billion) as initial consideration for the same.
"The transaction has been closed and completed. Piramal Healthcare has received the initial consideration amount of Rs 10,271 crore after adjustment," Piramal Healthcare said in a filing to National Stock Exchange.
Piramal had entered into a definitive agreement with Abbott in May this year for sale of its domestic formulations business, including its branded formulations business and its manufacturing facility at Baddi, for $3.72 bn (about Rs 18,000 crore).
According to the agreement Abbott had agreed to pay $2.12 billion upfront and the remaining amount in four annual installment of $400 million.
"This is an important milestone in Piramal Healthcare's journey. We are happy to see our domestic formulations business that we nurtured for 22 years, now become a part of a value driven company which assumes a leadership position in India," Piramal Group Chairman Ajay Piramal said.
As part of the agreement, Piramal will not engage in generic pharmaceutical business in the country for the next eight years.
The completion of the deal would also lead to transfer of more than 5,000 employees of the domestic formulation business to Abbott.
The domestic firm retains various segments, including custom manufacturing, critical care, over-the-counter consumer products, active pharmaceutical ingredients and clinical research services businesses.
In addition, the company will continue to pursue novel drug discovery and research through its affiliate firm, Piramal Life Sciences Limited.
The shareholders of Piramal Healthcare had approved the sale its domestic formulations business with an overwhelming majority on June 25. Shares of Piramal Healthcare were trading at Rs 519.30 on National Stock Exchange in late afternoon trade, up 1.74 per cent from its previous close.
