UCB announced that it Indian Exemed Pharmaceuticals will acquire UCB’s Indian production plant. A multi-year supply agreement has been put in place. No financial details, other than that there will be no impact on FY12 numbers, have been disclosed. No impact on valuation.
Our View:
The facilities, located in Vapi (North of Mumbai, India), employ around 80 staff and are responsible for around 2% of UCB’s total volume. It mainly focuses on the production, packaging and distribution of some mature UCB products predominantly for the Indian market.
Conclusion:
The asset sale fits UCB's strategy to focus on developing and commercializing innovative medicines and less on mass manufacturing.