Encube Ethicals, which has been manufacturing Soframycin for two decades, on Friday announced that it will be acquiring the skin cream and associated brands for the Indian and Sri Lankan market for a consideration of Rs 125 crore.
The company started in Goa 23 years ago has agreed to enter into definitive agreements with Sanofi group for acquiring Soframycin, and associated brands like Sofradex, Sofracort, Soframycin-Tulle for India and Sri Lanka markets, as per an official statement.
A spokesperson said the consideration is approximately Rs 125 crore subject to working capital adjustments.
Encube has been manufacturing both prescription-only and over-the-counter skin care products for global clients, and this will be the first entry into the Indian market with its own labelled products, the statement said.
''Encube's focus of over 23 years in skincare research and manufacturing will be leveraged to make a house of skincare brands, starting with the deep-rooted legacy of Soframycin,'' its founder and managing director Mehul Shah said.
''This decision has been taken to sell the brands to Encube, keeping in mind our strategic priorities and long-term road map,'' Sanofi India's managing director Rajaram Narayanan said.
The transaction is expected to close in three months and both the companies are committed to a smoother transition, the statement said.
(With inputs from PTI)