Dabur Pharma Ltd, an oncology drug producing major, on Thursday announced the sale of its domestic non-oncology formulations business to Alembic Ltd.
While company officials refused to divulge financial details of the deal, investment banking sources said that the deal was worth around Rs 150 crore.
Company officials said that the move is in line with Dabur Pharma’s strategy to "focus on its core oncology business and exit other non-core businesses".
"While the non-oncology formulations has been a growing business for us, this divestiture would allow us to increase our focus and investment in building a world class global Oncology business which we believe offers greater long-term value for Dabur Pharma’s shareholders", said Dr Anand Burman, Chairman, Dabur Pharma Ltd.
He also indicated that in the future the company would increasingly focus on its competencies in oncology and on expanding the research & generics portfolio in this area.
"Leveraging our core competencies and focusing our resources and energies in the oncology business that we believe has the greatest growth potential has been the driving force behind this move," said Ajay Vij, COO, Dabur Pharma Ltd.
"Oncology is the most valuable and strategically important business in Dabur Pharma’s business portfolio. It is integral to our long-term strategy and we continue to align the business so as to build on our leadership position in the global oncology market."
Sales of Dabur Pharma’s non-oncology formulations business in the first 3 quarters of 2006 amounted to Rs 62.1 crores.