SMS Pharmaceuticals has sold its manufacturing unit in Visakhapatnam to global major Mylan Laboratories for $33 million (Rs 173 crore).
In a notice to the stock exchanges, the the Hyderabad-based company said the Board identified and finalised Mylan Laboratories as the buyer. It approved the sale consideration for Unit-VI situated in the Pharma City, Visakhapatnam, for Rs 173 crore.
The money raised through the sale will be used to clear some existing debts, cut overhead costs, in addition to strengthening existing production facilities and working capital. The agreement has been signed with Mylan and the legal process would take a couple of months.
SMS Pharma is into manufacture of Active Pharmaceutical Intermediaries. It is into oncology, anti-ulcer products, and has formulations manufacturing. somasekhar@thehindu.co.in