NEW DELHI: RPG Life Sciences has sold its Gujarat-based biotechnology unit to Intas Pharmaceuticals for Rs 25 crore to focus on core areas of business and improve long-term competitiveness in a rapidly changing market.
The company’s board, which, has approved the sale and transfer of its biotech unit located at at GIDC, Ankleshwar, Gujarat as a going concern on a slump sale basis to Intas Pharmaceuticals, RPG Life Sciences said in a regulatory filing.
“In order to strengthen the focus on core areas of business and to improve long-term competitiveness in a rapidly changing pharmaceutical market by aligning with the management framework and strategy, it was imperative to sell off the biotech unit as a going concern on slump sale basis,” the drug firm added.
The company expects the deal to close by August 31, 2016.
“It has been our strategy to focus on our core businesses, and the sale of the Biotech Unit to Intas Pharmaceuticals will only help us achieve this goal and create value for stakeholders in the long term,” RPG Life Sciences Managing Director C T Renganathan said.
The proceeds from this sale will be used to strengthen and expand the existing main business of formulations and improve the overall profitability of RPG Life Sciences in the near future, he added.