New Delhi February 20, 2014:- Elder Pharmaceuticals has appointed consulting firm Deloitte for restructuring the company and its brands, including ‘Eldervit’, following the sale of its formulation business to Torrent Pharmaceuticals for Rs. 2,004 crore.
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, Elder Pharma said in a statement today.
As per the deal, major chunk of Elder Pharma’s employees will be joining the Ahmedabad-based Torrent Pharmaceuticals after March 31 and would need an organisational restructuring. It will be part of Deloitte’s consultancy job, the statement added.
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.
On December 13, 2013 the Mumbai-based firm had announced that it would sell its branded formulation business, comprising 30 brands, to Torrent Pharmaceuticals for Rs. 2,004 crore.
The deal, which has been approved by the boards of both companies, is expected to close in the first half of 2014.
“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,” company CMD Alok Saxena said.
Shares of Elder Pharma were trading at Rs. 189.75 apiece, down 0.26 per cent from their previous close, during afternoon trade on the BSE.- PTI
