Nectar Lifesciences sell API and formulations business to Ceph Lifesciences for Rs. 1,270 Cr

Nectar Lifesciences Limited, a leading pharmaceutical company, today announced the signing of a definitive Business Transfer Agreement (BTA) for the sale of its core business division-comprising the manufacture, distribution, and marketing of active pharmaceutical ingredients (APIs) and formulations to Ceph Lifesciences Private Limited, for a consideration of Rs. 1,270 crore, on a slump sale basis. 

Additionally, the company has entered into an Asset Purchase Agreement (APA) for the sale of its menthol business assets to Ceph Lifesciences for Rs.20 crore, marking a comprehensive restructuring move aligned with its future strategy. 

This transaction forms a part of Nectar Lifesciences' long-term strategy to streamline its operations, strengthen its financial position, and unlock value for shareholders. The proceeds from the sale will be used to: repay existing debt, invest in new and emerging business areas, reward shareholders and fund future corporate and growth initiatives 

Sanjiv Goyal, Promoter and Chairman of Nectar Lifesciences, commented: "This transaction marks a significant milestone in Nectar Lifesciences' evolution. By divesting mature segments of our business, we are laying the foundation for a focused and agile organization geared towards innovation and long-term value creation. We thank our stakeholders for their continued trust and support as we embark on this next chapter."