Nectar Lifesciences Sells Core Units to Ceph in Rs 1,290 Cr Deal

In a remarkable  move, Nectar Lifesciences announced the sale of its core active pharmaceutical ingredients (API), formulations and menthol business to Ceph Lifesciences Pvt Ltd, a total consideration of Rs 1,290 crore.

The transaction includes a Rs 1,270 crore slump sale of the API and formulations business plus a Rs 20 crore sale of the menthol assets. This decision continues to demonstrate Nectar's intention to simplify its business, become more agile, and focus on innovation based growth.

"By divesting mature segments of our business, we are laying the foundation for a focused and agile organisation geared towards innovation and long-term value creation," Nectar Lifesciences Promoter and Chairman Sanjiv Goyal said.

From an industry perspective, we think this divestiture further demonstrates the change in India's pharmaceutical sector and shows us that mid-sized pharma companies are monetizing their mature assets so that they can refocus in an environment with increasing R&D and regulatory burden.

The transaction is subject to customary approvals and is expected to close on or before September 20, 2025 and there is no change to Nectar's existing shareholding structure.

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While there is strategic rationale, the market reacted cautiously to the news and Nectar's shares fell by nearly 13% on Tuesday as there was a lack of clarity around the company's intention for its next phase of growth after the divestiture. However, industry watchers believe this deal positions Nectar for a leaner, more focused future in a rapidly evolving healthcare sector.