Glenmark sells its gynaecology segment to pare debt

One of the leading pharmaceutical companies, Glenmark Pharmaceuticals, sold its gynaecology business in India and Nepal to Integrace Health Pvt Ltd, backed by a private equity firm, True North, to cut down debt of the company.

Notably, it is the same company to which Glenmark sold its orthopaedic and pain management business in India a couple of years ago, that is, in 2018 for Rs 635 crore ($90 million then). In a stock-exchange filing, the company said that the deal which was finalised in Rs 115 crore, that is, $16.2 million in cash, consists of four products in its portfolio including Dubagest, Mumfer and Fenza. Meanwhile, these three products have sales of Rs 60 crore and are growing by 15 per cent.

True North said in a statement that they are enthusiastic about the deal which is likely to be completed by the end of March, 2020. The company said that they believe in the potential of Glenmark brand and its gynaecology team and is also certain that Integrace would be able to grow this segment successfully.

At 9.43 am, the stock of Glenmark Pharmaceuticals Limited is trading at Rs 354.45, up by 1.04 per cent against its previous close of Rs 350.80 on BSE.