Dishman Pharmaceuticals Signs MoU With Solvay

Dishman Pharmaceuticals & Chemicals Ltd has informed that it has signed a Memorandum of Understanding (MoU) with Solvay Pharmaceuticals BV (Solvay), the Netherlands, to acquire the fine chemicals, vitamin D and vitamin D analogues business from Solvay for an undisclosed amount. As part of this deal all facilities, people and activities located at Solvays Veenendaal site in the Netherlands and technology, patent and intellectual property rights for fine chemicals, vitamin D and vitamin D analogues business will be transferred to the Company after satisfactory completion of due diligence procedures, approval from the relevant authorities and appropriate employee information procedures. The transfer of ownership will be completed during 2007.The intended sale of Solvays site in Veenendaal is a result of Solvay Pharmaceuticals strategy to focus on the main therapeutic areas of cardiometabolic and neuroscience treatments and hive off the non-core business.The Company has a pre-existing long-term relationship with Solvay for contract manufacturing of a patented API and intermediates. Further, in 2001, the Company and Solvay had entered into Toll Manufacturing Agreement to convert a raw material supplied by Solvay into an intermediate of vitamin D3. With the experience gained and technology available with the Company, the acquired business will considerably add value to the Companys business.