January 7, 2016

Zoetis to sell assets to Zydus Cadila and Huvepharma

It's a sell-off period for Zoetis in recent days as elements of its business are set for ownership under Zydus Cadila and Huvepharma.

In a deal announced before the end of 2015, the latter, a major animal health company, will buy Zoetis' assets including medicated feed additives such as Albac (with the exception of products in the US), Bio-Cox / Salinomax and Inovocox EM1, a coccidiosis vaccine for broilers.

Zoetis sites - which Huvepharma will acquire - consists of US manufacturing sites in Laurinburg, North Carolina, and Van Buren, Arkansas, and a formulation facility in Longmont Colorado. Manpower from these locations will be transferred to Huvepharma.

The company is also buying over water soluble veterinary products, namely, R-Pen, Oxytet, Sul –Q-Nox, CTC, Lincomycin, Poultry Sulfa and Neo-Sol. Lincocin Forte,  Stockade, Bacivet, Combiotic and Quadrisol – pharmaceuticals products mainly sold in Europe – will be added to Huvepharma's inventory as well.

The products are expected to be available from Huvepharma on February 1 this year.

In India, Zydus Cadila, a pharmaceutical company based in Ahmedabad, Guijarat, has announced its intention to buy animal health brands - including nutrition, therapeutic and livestock care products - and an Uttarakhand-based manufacturing unit from Zoetis. The 10,000 square meter site, located in the city of Haridwar, is a WHO / GMP-approved facility that produces tablets, liquid orals and injectables.

It is expected to expand Zydus' exports and institutional business, the Economic Times reported.

"We believe that this strategic acquisition will strengthen our portfolio of brands and add new dimensions to our growth in the animal health business," said Pankaj Patel, chairman and managing director of Zydus Cadila.

The company did not reveal financial details surrounding the deal.