Orchid Pharma Ltd to transfer IKKT undertaking to JV with Bionpharma Inc

Subject to the receipt of requisite approvals, the board of directors of Orchid Pharma Ltd has approved the transfer of its NPNC Formulations Division (IKKT Undertaking) at lrungattukottai, Chennai to a Joint Venture with a subsidiary of Bionpharma INC, a US based generic pharmaceutical company with a commercial portfolio and a pipeline of generic products in the United States through Business Transfer Agreement to be executed between the Company and a "New Company" to be incorporated.

The turnover of its NPNC Formulations Division (IKKT Undertaking) for the Financial Year 2020-2021 is Rs.2133.26 Lakhs (4.7%)

The Proposed transaction is conditional upon satisfactory completion of the respective conditions precedent by the parties (including shareholders and other necessary approvals). The agreement for sale would be entered after approval of the Shareholders and incorporation of proposed Associate and completion of other necessary formalities.

The consideration for the transaction is estimated to be up to Rs.170 Crores in a combination of cash and equity stake up to 26% in the "New Company". The proposed company would be incorporated in India as an Associate of Orchid Pharma Limited and Subsidiary of Bionpharma INC, a US based generic pharmaceutical company.

Shares of Orchid Pharma Ltd was last trading in BSE at Rs.1485.8 as compared to the previous close of Rs. 1483.55. The total number of shares traded during the day was 614 in over 231 trades.

The stock hit an intraday high of Rs. 1525 and intraday low of 1464.3. The net turnover during the day was Rs. 911245.

Source : Equity Bulls

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