Ranbaxy Hives Off Croslands Division

Ranbaxy Laboratories has clinched a deal with French pharma major Galderma to sell off Glat (Global Alliances and Technologies), a division of Croslands, to the French company. This is the first sale of a Croslands division by Ranbaxy after it acquired the company last year.

Glat, a partnership venture between the erstwhile Croslands Laboratories and Galderma, was formed to manufacture and market a range of pharma products licensed from the French company and those of other licensees.

Under the deal, Galderma will buy out all its products which were being manufactured and marketed by Glat under the licence arrangement. About eight pharma brands are being marketed at present by Glat, which will now be sold off to Galderma.

 

For Galderma, the buyout deal is significant as it will mark its entry in the Indian market with a 100 per cent owned subsidiary. The French pharma major has already opened a representative office in Mumbai.

According to sources close to the French company, Galderma and Ranbaxy have already finalised the deal for Glat and the French company will soon seek the Foreign Investment Promotion Board's approval.

The price at which the deal was struck could not be ascertained. According to sources, Galderma will take over Glat along with its entire marketing team, which numbers about 150.

According to Ranbaxy officials, the transfer of brands from Glat to Galderma is being done in accordance with the original provisions in the agreement between Croslands and the French company. Under the original agreement, Glat was to promote the Galderma products 'until such time as Galderma commissioned its own products in India'.

Galderma now proposes to set up its own operations in the country and the brands licensed to Croslands and currently promoted by Glat will revert to Galderma, in accordance with the original agreement', Ranbaxy said in a faxed response to Business Standard.