Vivimed to sell some speciality chemicals products to Clariant

Drug firm Vivimed Labs has signed a pact for sale of some of products in its speciality chemicals division to Clariant Chemicals India.
The company has signed definitive agreement for the transfer and sale of identified products within speciality division to company Clariant AG's subsidiary Clariant Chemicals India Ltd, Vivimed Labs said in a BSE filing.
"The transaction values the identified product lines at an enterprise value of Rs 380 crore," it added.
Commenting on the development, Vivimed MD and CEO Santosh Varalwar said: "This transaction will help us significantly improve financial flexibility for future growth".
A major portion of the receipts will be used to reduce the debts thereby saving substantial interest costs going forward, Vivimed Labs said.

"Further, it will provide financial flexibility to pursue profitable growth across both the business segments of the company with focus on growing pharmaceuticals API and finished dosage forms business in regulated markets," it added.
Vivimed Labs shares closed 5.28 per cent up at Rs 345 apiece on the BSE.