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      Orchid Chemicals completes business transfer to Hospira


      CHENNAI: City-based drug maker Orchid Chemicals & Pharmaceuticals has completed the sale and transfer of its generic injectable finished dosage business to Hospira Healthcare India Pvt Ltd, a wholly owned subsidiary of Hospira Inc, US.

      Orchid Chemicals had signed a business transfer agreement with Hospira last December to sell its injectibles business, the manufacturing complex, research and development facility at Irungattukottai near here along with employees for $400 million.

      Hospira, which has a 50:50 joint venture with the Ahmedabad-based Zydus Cadilla to manufacture oncological drugs, found the Orchid plant an apt fit as it did not have a presence in that segment.

      What further attracted the US company is the regulatory approvals -- including one from USFDA (US Food and Drug Administration) -- Orchid had.

      Orchid Managing Director K Raghavendra Rao said Tuesday the completion of the deal would enable the company to achieve financial flexibililty.

      "In addition, through the strategic supply arrangement with Hospira, Orchid would be ensuring long-term contractual API (active pharmaceutical ingredients) revenue streams," he said.

      CB Rao, Orchid's deputy managing director, will head Hospira India as its managing director.

      April 07, 2010


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