Novartis India fell 1.4% to Rs 663 at 11:36 IST on BSE after the company's board of directors approved the transfer of its OTC division to GlaxoSmithKline Consumer as part of its global portfolio transformation.
Meanwhile, the BSE Sensex was down 56.40 points, or 0.21%, to 27,369.33
On BSE, so far 19,921 shares were traded in the counter, compared with an average volume of 18,495 shares in the past one quarter.
The stock hit a high of Rs 680 and a low of Rs 661.95 so far during the day. The stock hit a 52-week high of Rs 760 on 9 September 2014. The stock hit a 52-week low of Rs 394.50 on 14 February 2014.
The stock had underperformed the market over the past one month till 13 January 2015, falling 0.77% compared with 0.27% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 1.57% as against Sensex's 3.95% rise.
The small-cap company has an equity capital of Rs 15.98 crore. Face value per share is Rs 5.
Novartis India after market hours yesterday, 13 January 2015 said that as part of its global portfolio transformation, Novartis AG, Basel, Switzerland (Novartis AG) agreed with GlaxoSmithKline Plc, UK (GSK) on 22 April 2014 to create a global consumer healthcare joint venture.
In connection with the joint venture, the board of directors of the company yesterday, 13 January 2015 considered the transfer by the company of its OTC division to GlaxoSmithKline Consumer, a private unlisted company incorporated under the Companies Act, 2013 (GSKCPL) (or another affiliate of GSK) (the OTC Transaction) as a going concern by way of a slump sale for a consideration of Rs 109.73 crore, on or before 22 October 2015. The transfer of the business is subject to the receipt of all applicable legal and regulatory approvals, consents, permissions and sanctions as may be necessary from concerned authorities, as well as closing of the global joint venture transaction between Novartis AG and GSK, it added.
Factors considered by the board in its consideration of the OTC transaction included, but were not limited to, the prospects for the company's OTC business in India following the divestment of Novartis AG's global OTC business, including all of Novartis AG's major OTC patents, trade-marks and R&D assets, Novartis India said.
Novartis India's net profit dropped 69.2% to Rs 14.04 crore on 8.9% rise in net sales to Rs 227.83 crore in Q2 September 2014 over Q2 September 2013.
Novartis India is engaged in manufacturing and marketing drugs, pharmaceutical products and formulations for consumer healthcare and animal healthcare.
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