Dishman To Buy Solutia's Pharma Services Biz For $74.5 Mn

Ahmedabad-based Dishman Pharmaceuticals and Chemicals Ltd today said it will acquire the pharmaceutical services business of US-based Solutia Inc for 74.5 million dollars.

The company has signed an agreement for purchasing 100 per cent stake in CarboGen and Amcis--Solutia Inc's pharmaceutical services division, Dishman said in a statement.

The acquisition includes other assets used in the pharmaceutical services business, for a consideration of 74.5 million dollars, including a working capital of 8 million dollars, it said.

CarboGen and Amcis offer a broad portfolio of drug development and commercialisation services to the pharmaceutical and bio-pharmaceutical industry at all stages of drug development since 1982, it added.

To enhance the business prospects of the newly acquired entity, Dishman said it would expand the product suite and renew focus on key accounts to increase the scale of operations jointly by the Indian and Swiss businesses//, which can serve the entire drug life cycle of 15-20 years.

This acquisition will boost the company's contract manufacturing business from Carbogen customers, it added.

The pharmaceutical services business has research and development facilities at three sites in Switzerland with integrated platform, which provides seamless solutions to the world's leading pharmaceutical and biotechnology companies, it said.

Last year, the business had a turnover of approximately 80 million Swiss Franc. This transaction, however, is subject to regulatory approvals, including the bankruptcy court overseeing Solutia's re-organisation, it added.