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    • Zydus Cadila to divest...

    Zydus Cadila to divest two major units- Vivo, Gynova for Rs 1200 crore: Report

    Farhat NasimWritten by Farhat Nasim Published On 2019-12-27T13:12:28+05:30  |  Updated On 27 Dec 2019 1:12 PM IST

    New Delhi: Envisioning to off-load the burden of debts, one of India's top drugmakers- Zydus Cadila aka Cadila Healthcare is likely to vend its anti-infective and gynaecology divisions for Rs 1200 crore, a recent report in The Economic Times has suggested. Gujarat-based Zydus is in talks with various financial investors apart from rival Sun Pharma and Cipla to clinch the deal, added the media report.


    The two units are the second-largest contributors to the firm's consolidated revenues after the United States business. As per the annual report by Zydus for fiscal 2019, the overall revenue generated by the two units- anti-infectives and gynaecology was Rs 565 crore and Rs 282 crore respectively.


    The anti-infective division known as Vivo sells under brands such as Monotax, Merovaz, Apilox, Cefoxim, Biotax and others while the gynaecology division, Gynova sells brands such as Provironum, ZYHCG, Ovucet, and Ccliya — drugs that treat infertility.


    According to a media account in ET, Zydus has recently approached several strategic and private equity investors including Advent International, Blackstone, KKR and Carlyle to sell off the two units as part of a broader strategy to reduce debt in the company’s capital structure.


    In the recent past, the company had acquired Heinz India's consumer wellness business funded by a mix of debt and equity. Medical Dialogues had reported that the Kraft Heinz Company had entered into a definitive agreement to sell Indian brands Complan, Glucon-D, Nycil and Sampriti to Zydus Cadila at a valuation of approximately INR 46 billion (approximately USD$625 million) on a debt-free and cash-free basis.


    Also Read: Kraft Heinz to Sell Indian Brands Complan, Glucon-D, Nycil and Sampriti to Zydus Wellness Limited


    The acquisition was completed by a mix of debt, equity and borrowed funds that consequently led to a financial burden on the firm. Cadila Healthcare shares are reported to have lost almost a quarter in the past one year, underperforming the benchmark index that rose about a sixth in the same period.


    Also Read: Zydus Wellness to sell shares worth Rs 2575 crore to Cadila and three others

    With the pressing financial stress, Zydus has recently entered into talks with financial investors to unload debt and strengthen its balance sheet via selling off two of its units for Rs 1200 crore. A formal process to find a buyer in this regard has been handed over to investment bank Jefferies, reported ET

    anti infective unitbiotaxBlackstoneCadila HealthcareCarlylegynaecology divisiongynovaHeinzInvestorsJefferiesKKRovucetPrivate equityvivoZydus Cadilazydus cadila debtzydus cadila fundzydus fund
    Source : with inputs

    Disclaimer: This site is primarily intended for healthcare professionals. Any content/information on this website does not replace the advice of medical and/or health professionals and should not be construed as medical/diagnostic advice/endorsement or prescription. Use of this site is subject to our terms of use, privacy policy, advertisement policy. © 2020 Minerva Medical Treatment Pvt Ltd

    Farhat Nasim
    Farhat Nasim

      Farhat Nasim joined Medical Dialogue an Editor for the Business Section in 2017. She Covers all the updates in the Pharmaceutical field, Policy, Insurance, Business Healthcare, Medical News, Health News, Pharma News, Healthcare and Investment. She is a graduate of St.Xavier’s College Ranchi. She can be contacted at editorial@medicaldialogues.in Contact no. 011-43720751 To know about our editorial team click here

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