Kilitch Drugs touches the roof on concluding sale of business to Akorn, Inc

Kilitch Drugs is currently trading at its upper circuit limit of Rs. 59.15, up by 2.80 points or 4.97% from its previous closing of Rs. 56.35 on the BSE.

The scrip opened at Rs. 59.15 and has touched a high and low of Rs. 59.15 and Rs. 59.15 respectively. So far 3567 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 88.40 on 08-Sep-2011 and a 52 week low of Rs. 40.05 on 07-Jan-2012.

Last one week high and low of the scrip stood at Rs. 59.40 and Rs. 55.05 respectively. The current market cap of the company is Rs. 78.27 crore.

The promoters holding in the company stood at 64.43% while Institutions and Non-Institutions held 0.01% and 35.56% respectively.

Kilitch Drugs (India) has concluded the transaction of sale of company's business along with the Mumbai Business in accordance with the terms of the business transfer agreement and the Mumbai product transfer agreement. Pursuant to this the company has received an aggregate consideration of Rs 221.60 crore.

The company shall continue to carry on and expand the business of sales, marketing and distribution of eye care products, manufacturing from its Navi Mumbai facility and export of generic formulation products to certain overseas markets. The company has entered into certain agreements with Akorn for manufacture of products on contract manufacturing basis for Akorn.

Further, the company has also executed a management services and transition support agreement with Akorn where-under the company will provide certain transition and management services to Akorn for an additional consideration of Rs 32.50 lakh to facilitate transition of the business from the company to Akorn.

Last year in October, Kilitch Drugs (India) had entered into business transfer agreement (BTA) with Akron Inc., through its wholly owned Indian subsidiary, Akorn India for sale of its business which included research, development, manufacturing, marketing, importing and exporting of generics pharmaceuticals formulation products out of two factory units of the company situated at Himachal Pradesh to Akorn.

Kilitch Drugs (India) is engaged in the manufacture of injectibles such as gentamycin sulphate, dexamethason sodium phosphate, B-complex and others. Nasdaq-listed Akorn Inc is a niche generic pharmaceutical company.