Zydus Noveltech dissolved for not generating 'meaningful revenue'

Zydus Noveltech Inc (ZNI), a wholly-owned subsidiary of Ahmedabad-based pharma major Zydus Lifesciences, has been dissolved with immediate effect from December 15 as it was not generating any ‘meaningful revenue’. It had nil operating revenue and a net worth of Rs 10 crore as of March 31, 2023.

Zydus Lifesciences' stock was up 5.3 per cent on the Bombay Stock Exchange (BSE) on Monday.

In a regulatory filing, Zydus Lifesciences said on Monday that ZNI voluntarily closed its business operations in view of the fact that it had only one product commercialized in the US market through its associate, which was not generating any meaningful revenue and margins due to its limited scale. “Also, ZNI has been incurring losses as the company could not launch any other products in the US market and utilize the services of ZNI, which could have made operations commercially viable. In view of the same, the company did not see any future prospects of ZNI. Hence, ZNI is dissolved,” the statement added.

The certificate of dissolution is dated December 17, 2023, Zydus Lifesciences said in a BSE filing.

"Zydus Noveltech Inc was not a material subsidiary of the company and did not have any business activity at the time of dissolution. The dissolution of Zydus Noveltech Inc will not affect the business operations of the company," it said.