Zydus Cadila, which is a group company of listed drug-maker Cadila Healthcare is set to trim by strategy, selling off its two units--anti-infectives and gynaecology—in approximately Rs1000 to Rs1200 to reduce its debt and strengthen its ledger.
Earlier this year, Zydus Cadila borrowed money to help finance its Rs 4,600-crore acquisition Heinz India’s consumer wellness business and now selling off the two said units are part of a structural strategy to buoyant the balance sheet of the company.
Reportedly, Zydus has approached its rivals like Sun Pharmaceutical Industries and Cipla alongside the pharma biz investors like Blackstone, KKR, Advent International and Carlyle, however, they remained unavailable for comment.
Jefferies, an investment bank has been authorised to run a formal process to find a buyer.
The Ahmedabad-based company shows that the anti-infectives and gynaecology divisions contributed Rs 565 crore and Rs 282 crore to FY19 overall annual revenue of Rs 11,940 crore.
The anti-infective division that was acquired from Biochem Pharma in 2011, named Vivo sells under brands such as Ampilox, Biotax, Amicin, Monotax. Zydus’s gynaecology division, Gynova, sells drugs like Provironum, ZYHCG, Ovucet, and Ccliya that treat infertility.