Novartis India to sell rifampicin drug business to Sandoz

Mumbai, Jan 28 | Updated: Jan 29 2005, 06:15am hrs
Novartis India, on Friday, said that it has decided to sell its rifampicin bulk drug business and Mahad facility to Sandoz Pvt Ltd for a consideration of Rs 30.77 crore.

The company in a statement, issued here, said the rifampicin business has been facing severe operational challenges for some time mainly due to surplus capacities, cheaper imports and falling domestic prices. This has been a cause of concern for the company and after closely monitoring developments in the anti-TB market, the board decided to propose to the shareholders the sale of the companys rifampicin bulk drug business together with its Mahad facility to Sandoz Pvt Ltd for a consideration of Rs 30.70 crore, the statement said. This consideration will be suitably adjusted to represent any change in net asset value on the date of transaction.

The sale will be effective April 1, 2005 or any date thereafter. The company will seek shareholders approval of this proposal by postal ballot and necessary regulatory approval, the release added.

Meanwhile, Novartis India posted a 55% dip in the net profit to Rs 21.8 crore for the quarter ended December 31, 2004 as compared to Rs 48.8 crore for the quarter ended December 31, 2003.