Biocon, on Monday said that, it will sell Branded Formulations India (BFI) business on a ‘going concern’ basis to its subsidiary Biocon Biologics India Ltd.
“The Board of Directors of Biocon Limited at its meeting held on June 17, 2019, considered and approved the sale of Branded Formulations India (BFI) Business of the Company on a ‘going concern’ basis to Biocon Biologics India Limited (“BBIL”), a wholly owned subsidiary,” the company said in the filing.
The company has fixed July 01, 2019, as the expected date of completion of the sale and the consideration to be received is Rs45cr.
The transfer of BFI business on slump sale basis will lead to consolidation of marketing and manufacturing activities relating to BFI business under a single entity with common leadership and achieve synergies/value accretion for the group.
Biocon is engaged in the business of development, manufacture and sale of small molecules and novel drugs besides distribution of Branded formulations (consisting primarily of Biosimilars). BBI L is engaged in the business of manufacture of Biosimilars (including Branded Formulations).
On Monday, shares of Biocon Ltd ended at Rs245.80 down by Rs3.1 or 1.25% from its previous closing of Rs248.90 on the BSE. The scrip opened at Rs248.40 and touched a high and low of Rs248.40 and Rs245 respectively.