Alembic Pharma Sells Its Baddi Formulation Plant To Scott Edil Pharmacia
An Indian API maker, Vadodara-based Alembic Pharmaceuticals, has sold off its non-core asset, the Baddi manufacturing facility, on a slump-sale basis for an undisclosed sum to Chandigarh-headquartered pharma firm Scot Edil Pharacia Ltd.
No financial details of the deal, which Alembic said in the filing is on a “slump sale basis,” were disclosed. Alembic noted that the turnover and net worth of the plant over the last financial year was “insignificant.”
Scot Edil plans to use the facility for exporting to emerging countries. Alembic’s stocks were up in day’s trade by almost three per cent in the morning.
“The turnover and net worth of the said manufacturing facility for the last financial year vis-à-vis turnover and net worth of the company is insignificant,” said the company’s statement. Alembic Pharma Director (finance) R K Baheti said that the tax holiday for the facility was long over and the company had also not renewed the export approvals from the site. “The facility was not core to our manufacturing strengths. We have already touched full capacity utilisation at our Sikkim facility, which primarily caters to the domestic market, apart from some emerging markets. Hence, we
decided to divest it,” he said.Alembic, which is best known for manufacturing anti-infective, analgesic and cough and cold therapies, last month announced it would enter the oncology drug market by opening an anticancer manufacturing facility at Panelav, Halol, in Gujarat. That plant is expected to produce 60 million tablets and capsules and about 20 million vials of liquid injectable and lyophilized concentrates.
Alembic has six formulation and three API manufacturing facilities. Of the six formulation facilities, five are located near Vadodara in Gujarat—three at Panelav and two at Karakhadi. The sixth facility is in Sikkim. The pharma currently manufactures general oral solids in Panelav and is in the process of putting up oncology oral solids and oncology injectable facilities at the same location. The two plants in Karakhadi will manufacture general injectable and ophthalmic products. The manufacturing facility at Sikkim produces oral solid dosage and liquid oral dosage forms. The Panelav and Karakhadi facilities serve international markets, and the Sikkim plant serves the domestic market.
The company has also initiated expansion of manufacturing facilities into newer areas it was not yet present and is in the process of initiating expansion of oral solid manufacturing at a Greenfield site at Halol, near Vadodara.
Alembic’s three API manufacturing plants include two at Panelav and one at Karakhadi. All three facilities are cGMP compliant and serve the API requirements of the regulated markets.
