Alkem Laboratories has announced the transfer of its trade generics business to Alkem Wellness Limited (AWL), a wholly owned subsidiary, the company disclosed in a stock exchange filing on December 10, 2024.
The shares of Alkem Laboratories Limited were trading at ₹5,456.65, down by ₹27.95 or 0.51 per cent on the NSE today at 3:07 pm.
The slump sale involves transferring the entire trade generics business, including assets, liabilities, employees, contracts, intellectual property, and other related components. The business segment contributes approximately ₹1,783.8 crore, representing 18.3 per cent of the company’s standalone revenue for fiscal year 2023-2024.
The transaction is expected to be completed by March 31, 2025, with a potential consideration of up to ₹750 crore, subject to working capital adjustments. The consideration will be determined based on the fair market value as per Income Tax Rules.
Key strategic rationales for the move include achieving greater business agility, increasing focus on trade generics, and expanding market penetration in underserved markets. The company believes trade generics are positioned for higher growth, driven by the need for accessible and affordable medicines.
Importantly, the transaction will not alter Alkem Laboratories’ shareholding pattern. The Business Transfer Agreement is anticipated to be finalised in the fourth quarter of fiscal year 2025.
