The Mumbai-based Elder Pharmaceuticals has appointed consulting firm Deloitte for restructuring the company and its brands, including 'Eldervit', following the sale of its branded formulation business in October 13 last year to the Ahmedabad-based Torrent Pharmaceuticals for Rs.2,004 crore, reports said.
The sale of formulation business was approved by the boards of both companies and the deal is expected to be closed in the first half of 2014.
The company's overall strategy is to focus on its remaining brands, including Eldervit and Somazina, and position itself further in the growing nutraceuticals segment by launching more products, the company said.
As per the deal, many of Elder Pharma's employees will be joining Torrent Pharmaceuticals after March 31 and would need an organizational restructuring. It will be part of Deloitte's consultancy job.
Besides, the company is also planning to concentrate and build on its domestic business of anti-infectives, strengthen its in-licence portfolio and grow its business in the UK and Europe. At the same time, it would explore the possibility of entering new therapeutics areas.
CMD Alok Saxena said, "Given the strategy to focus on key brands and key areas, and to re-structure and re-strategise the brands and people, Elder Pharma would easily increase its revenues and profitability."
At the BSE, Elder Pharma closed Wednesday's trading at Rs.189.90 apiece, down 0.18 percent from the previous close.
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by RTT Staff Writer
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