Torrent to acquire 100% stake in Zyg Pharma
May 5th, 2015 - Torrent Pharmaceuticals Limited ("Torrent") announced that it has signed a share purchase agreement to acquire 100% stake in Zyg Pharma Private Limited ("Zyg Pharma"), a company engaged in manufacturing various dermatological formulations like creams, ointments, gels, lotions, solutions.
Zyg Pharma is part of the Encore Group, promoted by the Merchant family and is engaged into specialty pharmaceutical business for over 50 years. The manufacturing facility is located at Pithampur, (Indore) and is approved by various regulatory authorities including US FDA, TGA Australia. The company has capabilities for on site development, analytical method development and QC laboratory with separate areas for chemical, instrumental and micro sections.
In line with its strategy to diversify into new therapy segments, the acquisition will help Torrent to strengthen its position in niche dermatological segment especially in the developed markets like US and Europe. The company has been a manufacturing partner to several international companies in India and it has also build a successful international business through partners in regulated markets as well as in emerging markets.
Torrent would fund the acquisition through internal accruals.
The transaction has been approved by the Boards of Directors of both companies. The financial terms of the transaction are confidential. The transaction closure is subject to customary closing conditions and requisite regulatory and other approvals, and is expected to close by August 2015.
About Torrent Pharma
Torrent Pharma, with an annual turnover of over Rs.4200 crores is the flagship Company of the Torrent Group. With many of its products ranking among the top 200 brands, Torrent continues to be at the forefront of the Indian pharmaceutical industry. Torrent has a fully equipped Research Center, employing almost 600 scientists, to support the company's operations and product pipeline for both domestic and overseas markets. The company's manufacturing plants located at Indrad, Baddi & Sikkim have facilities to produce Formulations and Bulk drugs. The plants are approved by authorities from various regulated and semi regulated markets like US, UK, Brazil, Germany, Australia and South Africa.