Mumbai, Nov. 18: GlaxoSmithKline Pharmaceuticals Ltd today sold its bulk drugs unit at Ankleshwar to Glenmark Pharmaceuticals Ltd for a consideration of Rs 14 crore.
In a communication to the stock exchanges, Glaxo stated the deal was approved by its board at a meeting held today where an agreement was signed for sale of the rights, title and interest of the company in the assets and the immovable property located at Ankleshwar to Glenmark.
The sale is subject to necessary approvals from the concerned authorities and shareholders of GlaxoSmithKline Pharmaceuticals—the latter it plans to seek by postal ballot.
The Glenmark scrip closed at Rs 215.50 on the BSE today, up 1.65 per cent from its previous close, while the GlaxoSmithKline share closed at Rs 324.15, up marginally over the last finish of Rs 323.75.
Glaxo was planning to sell the Ankleshwar unit over the past few months due to its unviability and had offered a voluntary retirement scheme (VRS) for the workmen. The unit manufactured Ranitidine, the key ingredient in the company’s major anti-ulcer product Zinetac.
The company is reported to have spent close to Rs 19 crore for the first round of the VRS, which had been accepted by all 214 employees.
It had offered a similar scheme to workmen at its Worli unit as well.
Pursuant to the merger of SmithKline Pharma, Glaxo has been focussing on pruning the number of brands from its gigantic portfolio and concentrating on developing strategic brands in therapeutic segments like anti-asthma products, anti-infective and vaccines.
For the nine months ended September 30, 2002, Glaxo’s sales grew 11.5 per cent to Rs 834 crore and net profit rose 19 per cent to Rs 100.6 crore.