Drug-maker Aventis Pharma on Monday said it will sell its 49 per cent stake in Chiron Behring Vaccines (CBVPL) to its joint venture partner Novartis Vaccines & Diagnostics Inc, for $22.4 million (nearly Rs 100 crore).
The two partners, who have been fighting a legal battle over marketing of Aventis' anti-rabies vaccine Verorab, have agreed to settle their dispute following the deal.
In a filing to the Bombay Stock Exchange, the company said its board has approved the sale of a 49 per cent stake in Chiron Behring Vaccines, representing 49 lakh shares, to Novartis Pharma AG, a nominee of Novartis Vaccines & Diagnostics Inc.
The sale of the said shares is expected to conclude before December 31, it added.
Following the transfer, Novartis Vaccines & Diagnostics Inc will continue to hold 51 per cent of the equity in the company, it added, and it has nominated transfer of Aventis Pharma's 49 per cent stake to its nominee, Novartis Pharma AG.
"We have agreed with our joint venture partner, Novartis Vaccines & Diagnostics Inc, to sell our 49 per cent shareholding to its nominee, Novartis Pharma AG, and exit our joint venture," Aventis Pharma said.
"The purchase price agreed to be paid to us is $22.399 million," it added.
Aventis Pharma has agreed to continue to provide certain utilities in services to the Ankleshwar plant of CBVPL for a period of three years from the date of closing on mutually agreed terms, the filing said.
CBVPL manufactures anti-rabies vaccine 'Rabipur' at its plant in Ankleshwar. Until February, 2009, the vaccine was distributed in India by Aventis Pharma and it is presently being distributed by Novartis Healthcare.
Upon conclusion of the share sale, the pending disputes between Aventis Pharma and Novartis Vaccines & Diagnostics Inc shall stand resolved and all legal proceedings filed in connection with such disputes shall be unconditionally withdrawn, it added.
Last year, the Bombay High Court had stopped Aventis Pharma from marketing Verorab after Novartis raised objections to the former selling the drug on its own instead of through their JV.
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