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 company.
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 officials said.
Agrivet makes feed supplements and medicines for livestock, poultry, sheep, equines, canines and aquaculture.
The 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.