Glenmark offloads Indian gynaecology business for Rs 115 crore
New Delhi: In an attempt to drag down the financial burden, drug giant Glenmark Pharmaceuticals Limited (Glenmark) recently sold off its gynaecology business in India and Nepal for Rs 115 crore (about $16.2 million) in cash. The gynaecology business portfolio has been acquired by private equity firm True North backed Integrace Pharma and includes brands like Dubagest, Mumfer, Fenza and Milical.
The drugs, Dubagest is used to correct menstrual disorders caused due to a deficiency of this hormone in the body while Mumfer and Fenza are indicated to treat anaemia caused by abnormal heavy bleeding during menstrual periods (menorrhagia), pregnancy, or kidney problems; and fungal infections of the vagina (vulvovaginal candidiasis) respectively.
Currently, the brands Dubagest, Mumfer and Fenza have sales of Rs 60 crore and are growing by 15%. However, the gynaecology business accounts for less than 1 per cent of Glenmark's total revenue.
"The turnover of the Gynaecology business in India & Nepal for the year ended March 31, 2019, was less than 1% of the turnover of Glenmark Pharma on stand-alone basis," Glenmark said in a filing.
Despite investing in the Research and Development (RnD) and the United States market the debt on the company has inflated, thereby, prompting the firm to trim down the burden via divestments.
Prior to this, in 2018 Glenmark had entered into a collaboration with private equity firm True North for its orthopaedic and pain management business for India and Nepal market. Under this collaboration, Glenmark's orthopaedic and pain management business was valued at Rs 635 crore and was to be transferred to a new entity namely Integrace Pharma, incorporated by True North.
The country's gynaecology segment is estimated at Rs 12,500 crore and has been growing faster than the broader Indian pharmaceutical market. Glenmark's latest transaction which is likely to be completed by the end of March 2020 will stimulate growth for the Gynaecology business in the new entity.