Piramal Healthcare Ltd said following the sale of its domestic formulations business it received Rs10,271 crore as initial payment from to US-based Abbott Healthcare Ltd.
Piramal had entered a definitive agreement with Abbott in May this year for sale of its domestic formulations business, including its branded formulations business and its manufacturing facility at Baddi, for about Rs18,000 crore.
According to the agreement Abbott had agreed to pay $2.12 billion upfront and the remaining amount in four annual installment of $400 million.
As part of the agreement, Piramal will not engage in generic pharmaceutical business in the country for the next eight years. The completion of the deal would also lead to transfer of more than 5,000 employees of the domestic formulation business to Abbott.
On Thursday, Piramal Healthcare shares gained 1% to Rs526 on the Bombay Stock Exchange, while the benchmark Sensex closed 0.7% up at 18,799 points.
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