By IANS,
Chenna: City-based Orchid Chemicals & Pharmaceuticals Ltd Tuesday announced the completion of sale and transfer of its generic injectable finished dosage business to Hospira Healthcare India Pvt Ltd, a wholly owned subsidiary of Hospira Inc, US.
Orchid Chemicals and Hospira had signed a business transfer agreement last December to sell its injectibles business, the manufacturing complex, research and development facility at Irungattukottai near here along with employees for $400 million.
Hospira, which has a 50:50 joint venture with the Ahmedabad-based Zydus Cadilla for manufacture of oncological drugs, looked at Orchid Chemicals’ betalactam plant near here as an apt fit as it did not have a presence in that segment.
What further attracted the American company to Orchid Chemicals’ plant is the regulatory approvals it had, including one from USFDA (US Food and Drug Administration).
According to Orchid’s managing director K. Raghavendra Rao, the completion of the deal will enable the company to de-lever its balance sheet and achieve financial flexibiility.
“In addition, through the strategic supply arrangement with Hospira, Orchid would be ensuring long term contractual API (active pharmaceutical ingredients) revenue streams,” he said.
Orchid’s deputy managing director C.B.Rao will be heading Hospira India as its managing director.