Orchid Pharma to transfer NPNC formulations division to JV with Bionpharma

This strategic collaboration, according to Orchid Pharma, will allow Orchid to expand its formulations base in regulated markets with a strong partner with a presence in the US, which is especially important in light of the current pandemic.

Further, it added that the consummation of the transaction is subject to execution of definitive agreements and usual conditions precedent, including the approval of shareholders of Orchid and other approvals. It will update the office once the Business Transfer Agreement in this regard is signed.

Orchid Pharma was listed as one of the 28 major corporate defaulters on the Reserve Bank of India's second list of debt-laden firms referred for insolvency in August 2017, according to a VCcircle report. It owed a group of 24 banks a sum of Rs 3,200 crore.

The daily further added that Orchid Pharma, headquartered in Chennai, reported in its 2020 annual report that efforts were made to improve manufacturing processes in order to reduce costs at the NPNC division. The company's Abbreviated New Drug Application (ANDA) approvals for the US market reportedly reached 29 in the NPNC domain.

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