Torrent Pharma divests stake in Sanofi India Ltd

Torrent Pharmaceuticals Ltd has divested its entire stake in the Sanofi Torrent India Ltd, a joint venture of the TPL and Sanofi Synthelabo.

According to a company release on Wednesday, the joint venture operated successfully for about five years but in the view of on going changes in India's pharmaceutical industry, both partners felt that the venture may not fit their future strategic objectives.

Thus it was mutually decided that TPL will exit the venture by selling its 50 percent state to SS. STIL will now become a 100 percent subsidiary of SS. The sale consideration for divestment is nearly Rs 25.49 crores, vis-a-vis the original investment of Rs 1.5 crores in 1996-97 for acquisition of this stake.

The release added that as part of the divestment package. STIL will purchase from TPL, the trademark and related know-how for Valparin, an anti-epileptic that Torrent had licensed to STIL at the time of forming the joint venture.

Republished from The Asian Age