Glenmark Pharmaceuticals rose 2.66% to Rs 193 after the company divested female intimate hygiene brand, VWash, to Hindustan Unilever.
Meanwhile, shares of Hindustan Unilever (HUL) surged 5.42% to Rs 1974.
Glenmark Pharmaceuticals on Monday (23 March 2020) announced that it has entered into an agreement with Hindustan Unilever (HUL) for divestment of its VWash brand and other extensions. Under this agreement, the brand and other trademarks, copyrights, know-how associated with Glenmark's VWash business will be transferred to HUL.
Without disclosing the cost of acquisition, Glenmark said it will receive an upfront payment and royalty on sales for three years. No employees will be transferred as a part of this agreement. The transaction is expected to be completed in the next few months subject to customary approvals.
Glenmark launched VWash, a liquid vaginal wash, as an OTC product in 2013. The company continued to invest in building the brand and established it as amarket leader in the intimate hygiene category. Over the years, Glenmark launched multiple line extensions like VWash Wipes to expand the brand offering across different consumer needs.
Glenmark said it intends to further consolidate its position in the core therapy areas of respiratory, dermatology and oncology globally. Glenmark's OTC business will focus on its other leading brands like Candid Powder, Scalpe and introduce new Rx to OTC switches.
On a consolidated basis, the drug maker reported 64% rise in net profit to Rs 190.74 crore on a 5.1% increase in net sales to Rs 2638.62 crore in Q3 December 2019 over Q3 December 2018.
Glenmark Pharmaceuticals is a global research-led pharmaceutical company with presence across generics, specialty and OTC business with operations in over 50 countries. Glenmark's key therapy focus areas globally are respiratory, dermatology and oncology.
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