The sale of a 75% ownership in Glenmark Life Sciences, a subsidiary of Glenmark Pharmaceuticals, to Nirma for a total price of 5.651.75 crore was announced on Thursday, September 21. With the reduction in equity, the Mumbai-based pharmaceutical company would still hold a 7.84% stake in Glenmark Life Sciences.
Details on Nirma will purchase Glenmark Pharma’s 75% stake in its subsidiary Life Sciences segment for 5651 crore
The sale of 91,895,379 shares representing 75% of Glenmark Life Sciences Ltd’s share capital to Nirma Ltd at a price of $615 per share, totaling $5,651.5 crore, was approved by the company’s board of directors at its meeting on September 21, 2023, Glenmark Pharma said in a regulatory filing to the stock exchanges on Thursday.
According to the announcement, certain non-compete and non-solicitation agreements for a predetermined time period have been reached by the firm, Glenmark Life Sciences, and Nirma as part of the deal. Nirma, whose goods range from soap to cement, will make an obligatory open offer to all Glenmark Life Sciences public stockholders.
In August, Nirma made a legally binding offer for a stake in Glenmark Pharmaceuticals. According to sources, the private equity firm ChyrsCapital was also competing to acquire a share in Glenmark Pharmaceuticals.
The purchase is pending the usual regulatory approvals. With this agreement, the Nirma Group expands its current presence in the pharmaceutical industry and enters the active pharmaceutical ingredient (API) platform. This includes injectables, parenterals, and ophthalmic products. The group’s acquisition of Stericon Pharma Private Limited in March 2023 was quickly followed by this deal.
The primary activity of Glenmark Life Sciences Limited is the creation, production, and marketing of APIs. The product range of the company consists of a number of therapeutic areas, such as cardiovascular disease (CVS), disorders of the central nervous system (CNS), diabetes, gastrointestinal health, oncology, pain management, and antibiotics.
Glenmark Pharma’s stock fell 3.32 percent on Thursday, ending the day at $828.05 a share after reaching an intraday low of $822 on the BSE.
