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Cadila Healthcare looking to sell animal health business: Sources

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Gujarat-based Zydus Cadila Group’s Cadila Healthcare is looking to sell its animal healthcare business, CNBC-TV18 has learnt.

Amidst a flurry of deals in the pharmaceuticals space, Gujarat-based Zydus Cadila Group’s Cadila Healthcare is looking to sell its animal healthcare business, CNBC-TV18 has learnt. The ask price is at least $400 million, or Rs 3,000 crore.
Two independent sources with direct knowledge of the development said that Cadila Healthcare is eyeing the rich valuations that the animal healthcare segment commands globally.
Earlier this year, PE firm Carlyle had acquired Sequent Scientific, an animal healthcare-focused firm in a Rs 1,587-crore deal, establishing a benchmark for the space.
“Cadila Health wants to capture the interest of private equity players in the animal healthcare business,” one of the sources said.
When contacted by CNBC-TV18 for a comment, Cadila Healthcare “strongly denied” that it was planning to sell the vertical.
The animal health business contributes a little less than 5 percent of Cadila Health’s revenues. The company transferred animal health to a wholly-owned arm Zydus Animal Health (ZAHL) as part of an internal restructuring exercise.
The animal health business of Cadila Healthcare is largely India-focused, comprising activities from product development and manufacturing to marketing and selling.