Torrent Pharmaceuticals has signed a Share Purchase Agreement (SPA) to acquire 100% stake in Zyg Pharma (Zyg Pharma), a company engaged in manufacturing various dermatological formulations like creams, ointments, gels, lotions, solutions.
Zyg Pharma is part of the Encore Group, promoted by the Merchant family and is engaged into specialty pharmaceutical business for over 50 years. The manufacturing facility is located at Pithampur, (Indore) and is approved by various regulatory authorities including US FDA, TGA Australia. The company has capabilities for on site development, analytical method development and QC laboratory with separate areas for chemical, instrumental and micro sections.
In line with its strategy to diversify into new therapy segments, the acquisition will help Torrent to strengthen its position in niche dermatological segment especially in the developed markets like US and Europe. The company has been a manufacturing partner to several international companies in India and it has also build a successful international business through partners in regulated markets as well as in emerging markets.
The company would fund the acquisition through internal accruals. The transaction has been approved by the Boards of Directors of both companies. The transaction closure is subject to customary closing conditions and requisite regulatory and other approvals, and is expected to close by August 2015.
