Piramal Enterprises (PEL) has signed a definitive agreement to sell its clinical research division known as ‘Piramal Clinical Research (PCR)’ (formerly known as Wellquest), to Indoco Remedies (Indoco) on a going concern basis for cash. Hyderabad based PCR specializes in conducting bio-analytical and bioequivalence studies for generic products and holds approvals from various regulatory agencies including US FDA, UK MHRA, etc.
PCR was not considered strategic in nature and formed a relatively small portion of the PEL’s consolidated business. The transaction does not have a material impact on PEL’s balance sheet or P&L. Fixed assets of this division along with the employees will be transferred to Indoco on a slump sale basis as a part of the transaction. The sale transaction is expected to be completed upon receipt of purchase consideration by April 06, 2015.
Piramal Enterprises (PEL) is one of India’s large diversified companies, with a presence in healthcare, healthcare information management and financial services. PEL’s consolidated revenues were $750 million in FY2014, with approximately 70% of revenues from outside India.
