Piramal to sell its clinical research division

Indoco Remedies buys business on a going-concern basis for cash

Piramal Enterprises Limited (PEL), belonging to over Rs 6,000-crore Piramal group, stated it had entered into an agreement to sell its Hyderabad-based clinical research division, Piramal Clinical Research (PCR) (formerly known as Wellquest), to Indoco Remedies Limited (Indoco) on a going concern basis for cash.

PCR specialises in conducting bioanalytical and bioequivalence studies for generic products and holds approvals from various regulatory agencies, including US FDA and UK MHRA.

The division was not considered strategic in nature and formed a relatively small portion of the PEL’s consolidated business. The transaction does not have a material impact on the company’s balance sheet, PEL informed bourses on Wednesday.

According to PEL, fixed assets of PCR along with the employees will be transferred to Indoco on a slump sale basis as a part of the transaction. The sale transaction is expected to be completed upon receipt of purchase consideration by April 6, 2015.

Listed on NSE and BSE, Indoco is engaged in manufacturing and global marketing of formulations and active pharmaceutical ingredients.

Piramal Group's diversified portfolio includes presence in industries like healthcare, financial services, healthcare information management, glass packaging and real estate.