GSK announces sale of Vemagal plant
GSK Pharma has decided to sell its state-of-the-art tablet facility at Vemagal (Karnataka), taking a financial impairment of Rs 640 crore in the third quarter ended December 31. The decision was taken on account of the financial impact of voluntary recall of popular heartburn medicine ranitidine, Zinetac in India. The company had recalled the medicine in September last year, following investigations by USFDA which raised a global alarm over the presence of a cancer-causing substance—NDMA (N-Niteosodimethylamine) in certain ranitidine medicines. The decision is due to under-utilisation of GSK India’s manufacturing facilities, and Rs 97 crore on account of other related assets / costs, a company statement said. As part of this strategic review, GSK India will explore future options for the Vemgal facility including a potential sale of the site, it said. GSK had invested around Rs 1000 crore staggered over a period 2012-13 and 2017-18 in the facility, which was to be inaugurated this year...