New investor for Glemark Life Sciences
Subject to regulatory approval, Glenmark Pharma has agreed to sell a 75% stake in its Glenmark Life Sciences (GLS) business unit to its India compatriot, Nirma. Nirma is a conglomerate which mainly makes detergents and cement but which also acquired sterile contact lens solutions maker Stericon Pharma in April. GLS is mainly active in the manufacture of APIs.
“Synergies between Glenmark Pharma and GLS the business have been rapidly disappearing and companies have had divergent pathways,” said chairman Glenn Saldanha.
Nirma has also made an open offer to GLS shareholders to acquire a further 17.33% stake in the company at $7.59/share. Glenmark Pharma, which will now focus more on its branded drugs for skin and respiratory disorders and expanding overseas, will retain the remaining 7.84%. It will use the proceedings of nearly $680 million ($7.4/share) to repay debt.