Cadila Healthcare Ltd has acquired the remaining 15% stake each in its subsidiaries Zydus Technologies Ltd andZydus Noveltech Inc for a combined $250,000 from strategic and minority partner Sharad Govil, the company said in a filing with exchanges.
While Cadila Healthcare is spending $225,000 for Zydus Technologies, it will buy the stake in Zydus Noveltech for $25,000.
Following the acquisition of the stake, the two companies will become wholly-owned subsidiaries of Cadila Healthcare.
Both Zydus Technologies and Zydus Noveltech manufacture and sell novel drug delivery systems in the US, mainly for the release of pain, hormones and cardiovascular therapeutic areas.
India-based Zydus Technologies was incorporated in February 2009, and had a turnover of ₹2.09 crores in 2018-19, while US-based Zydus Noveltech had a turnover of $1.6 million in 2018.
Zydus Technologies has a manufacturing plant in Gujarat while Zydus Noveltech has a manufacturing plant through its wholly owned entity, Hercon Pharmaceuticals LLC USA.
Cadila Healthcare also plans to merger Zydus Technologies into the company in order to consolidate its transdermal business and simplify its corporate structure.
The company expects the acquisition to complete within a month, as per a filing with exchanges.
Source: Mint