Zydus Lifesciences Ltd. will exit a joint venture with the local arm of German pharma major Bayer AG, after selling its 25% stake for Rs 282 crore. The board approved entering into a share purchase agreement for sale and transfer of shares in Bayer Zydus Pharma Pvt. to Bayer Pharmaceuticals Pvt., according to an exchange filing on Thursday.
The transaction will not have material impact on the company and will be conducted within 10 days from the date of execution of the deal.
The two drugmakers started their joint venture in 2011 for sale and marketing of pharmaceutical products in India, with an aim to combine Zydus's strong local marketing, sales expertise and distribution reach with Bayer's global expertise in commercialising novel solutions.
Bayer Zydus Pharma has made available therapies in the areas of cardiovascular diseases, diabetes, women's health, ophthalmology and oncology in the country.
The joint venture agreement required Zydus Lifesciences to sell its stake after 13 years to either Bayer or its affiliates.
Shares of the Mumbai-based pharmaceutical companies closed 3.62% higher at Rs 988.1 apiece on Thursday, ahead of the announcement, as compared with a 0.17% advance in the benchmark BSE Sensex.
(Corrects an earlier version of the article that mistated Bayer Zydus Pharma as the manufacturer of Saridon and Alaspan)
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