Cadila Healthcare clarifies market speculations
Cadila Healthcare has clarified and rejected the market claims of the company’s intent to sell two of its divisions.
Previously, media reports suggested that Zydus Cadila is in talks with several strategic and private equity investors to sell two of its divisions, belonging to anti-infectives and gynecology, for around Rs 1,200 crore in order to lower the debt and strengthen the company’s balance sheet. It was considered as a part of a broader strategy for reducing debt of the company’s capital structure since it had borrowed finances to be able to accumulate the required finance for the Rs 4,600 crore acquisition of Heinz India’s consumer wellness business, earlier this year. The media reports also stated that Zydus had approached its peer companies, such as Cipla and Sun Pharmaceutical Industries, and financial investors, such as Advent International, Blackstone, KKR, and Carlyle, as well.
Headquartered in Ahmedabad, Cadila Healthcare is a pharmaceutical company and a manufacturer of generic drugs. Its subsidiaries include Zydus Wellness Limited, Windlas Healthcare Pvt Ltd, Liva Pharmaceuticals Limited, Biochem Pharmaceutical Industries Limited, etc.
On Friday, the stock of the company closed at Rs 256, down by 0.35 per cent or Rs 0.90 per share. The 52- week high is Rs 359.90 and 52-week low is Rs 206.45 on BSE