Chennai: Orchid Chemicals and Pharmaceuticals on Wednesday signed an agreement with US drug firm Hospira, selling its generic injectable finished dosage business for more than Rs 1,800 crore ($400 million).
The sale-off included Orchid's beta-lactam antibiotics complex facility at Irugattukottai near here, Hospira's chief operating officer Terry Keamey told reporters here.
Beta-lactam antibiotics are those drugs which are derived using bacteria as sources. Keamey said the acquisition would help Hospira's direct presence in India.
Orchid managing director K Raghavendra Rao said the transaction would provide the city-based company financial flexibility to pursue new growth opportunities.
He said the deal included cephalosporin, pencicillin and carbapenem manufacturing facilities and the research and development facility at Irugattukottai.
Both companies also signed a long-term exclusive agreement for supply of active pharmaceutical ingredients by Orchid to Hospira, Rao said.
The transaction would be completed by the first quarter of 2010 and subject to approval of Orchid's shareholders, regulatory and legal authorities, he said.
PTI
First Published: Wednesday, December 16, 2009, 15:52