GSK Pharma sells veterinary business Agrivet to Virbac
Glaxosmithkline Pharmaceuticals India (GSK),
the Indian arm of GSK Plc, has sold its veterinary business Agrivet Farmcare
(AFC) to Virbac, a French-based pharma firm focused in the animal health
business, for Rs 2.07 billion (€36 million)
Agrivet Farmcare is the market leader in the domestic veterinary drug market
with a sales turnover of Rs 1.19 billion (€21m).
The acquisition of
Agrivet will mark Virbac's entry into the Indian market and will give it an over
10% market share. Virbac is the world's ninth-largest animal health
GSK officials said that its R&D pipeline in veterinary
products is almost nil. "GSK India also reduced its research spending on the
veterinary business and it is no more a focus area of the company," GSK
Agrivet makes feed supplements and medicines for
livestock, poultry, sheep, equines, canines and aquaculture.
company has a widespread distribution network comprising 24 C&F agents,
1,200 distributors and 10,000 retailers. The poultry segment contributes to
around 30% of the total sales of AFC.
Agrivet Farmcare's leading
products in the poultry segment are feed supplements, biosecurity products,
liver stimulants and antibiotics.
Multinational pharma firm Pfizer
and domestic pharma companies like Nicholas Piramal, Zydus Cadila were also on
the race for Agrivet. Pfizer had earlier backed out the deal after doing a due
diligence two years ago.
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