The Hindu Business Line : Dishman Pharma to acquire vitamin unit of Netherland co

MUMBAI: Dishman Pharmaceuticals & Chemicals on Monday said that it will acquire the fine chemicals, vitamin D and analogues business from the Netherlands-based Solvay Pharmaceuticals BV for an undisclosed amount.

The company has entered into a Memorandum of Understanding with Solvay Pharmaceuticals for acquisition of the business unit, it informed the BSE.

As part of this deal all facilities, people and activities located at Solvay's Veenendaal site in the Netherlands and technology, patent and intellectual property rights for fine chemicals, vitamin D and its analogues business would be transferred to the company after completion of due diligence procedures and other approvals.

The transfer of ownership would be completed during 2007, the company said.

The intended sale of Solvay's unit is a result of the Netherland-based firm's strategy to focus on the main therapeutic areas of cardiometabolic and neuroscience treatments and hive off the non-core business.

Dishman Pharma has a pre-existing long-term relationship with Solvay for contract manufacturing of a patented API and intermediates. ''Acquiring the cholesterol, vitamin D and its analogues business is a step in right direction. It will not only increase products of Dishman but also bring new customer relationships,'' company's managing director JR Vyas said.

Veenendaal site of Solvay houses the Vitamins and Chemicals unit where the main activities include production, marketing and sales of cholesterol and related products.

Dishman Pharma would retain production of cholesterol and vitamin D analogues at Veenendaal and transfer the vitamin D3 production to its Indian plants, it added. - PTI

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