Torrent to acquire Indian branded formulations from Elder

Torrent Pharmaceuticals (TRP: IN) saw its shares rise 7% to 349 rupees after it said it is acquiring the branded domestic formulations business of fellow Indian drugmaker Elder Pharmaceuticals for around 20 billion rupees (about $325 million).

Elder's India business comprises a portfolio of 30 brands including market leading products in the women's health care, pain management, wound care and nutraceuticals therapeutic segments.

The identified India Business is being sold as a going concern on a slump sale basis and the transaction will also involve the transfer of employees engaged in sales, marketing and operations of the India business. Under the proposed transaction, Elder will continue to manufacture and supply the products at its existing manufacturing facilities for Torrent for a period of three years. Torrent would fund the acquisition through a mix of internal accruals and bank borrowings.