CHENNAI: Drug makers
Baxter
and
Zydus
Cadila have shown preliminary interest in buying out
Pfizer’s
Sriperumbudur
factory in a deal that could value the facility at Rs 700-900 crore. "The transaction is in early stages and may be completed over the next three to five months," sources said.
Pfizer announced its decision to sell the factory in Sriperumbudur and Aurangabad, citing viability. The Sriperumbudur factory, first put up by
Orchid Pharma
, was sold to
Hospira
when Orchid exited the generic injectable pharma business in 2009. In a global transaction, Pfizer acquired Hospira in 2015. Thereafter, the factory came under Pfizer’s control.
Baxter and Zydus Cadila did not respond to multiple messages seeking their response, and Pfizer could not be reached for a comment.
"At present, there is no production at the factory. Most of the employees have also been seen off. Internally, the factory is ready for sale," sources said. The sale — of building and machinery — does not guarantee the buyer Pfizer’s business.
"In all likelihood, the buyer will not get any business from Pfizer," said the source, adding that the transaction is being overseen directly by the US parent.
The US FDA-compliant plant was an export-oriented unit. Pfizer had some working issues with the factory.
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