FIIs investments in Glenmark Pharmaceutical and Aurobindo Pharma got Approval
Published By : 08 Apr 2015 | Published By : QYRESEARCH
The CCEA or Cabinet Committee on Economic Affairs, headed by the Indian Prime Minister, Mr. Narendra Modi, today gave permission to 2 important foreign investments in the pharmaceutical industry. Aurobindo Pharma is engaged in producing active pharma and generic pharmaceuticals ingredients, and permission has been provided for qualified institutional purchasers to instill fresh investment of upto 7% into the company.
The present FII shareholding is 27.32% in the firm. This will enable the firm to spread its operations in the fields of anti infective, central nervous system, and cardiovascular system related ingredients. Aurobindo Pharma has a workforce of over 9,500 professionals from around 26 nations.
In Glenmark Pharmaceutical, the firm has raised the foreign investment perimeter by FIIs to 49% from 35.07%. Apart from producing pharmaceuticals, the firm is also affianced in research and development activities in various drugs. Glenmark Pharmaceuticals is a US$1000 million Indian pharmaceutical enterprise, with a global presence having production units in South America, Europe, and India.
Both the companies are encouraged by Indian entrepreneurs who have marked a footprint across the globe over these years. The firms are required to maintain the production of medicines under NLEM or the National List of Essential Medicines in the same way as they had been doing previously.
These firms are also required to keep a track of the R&D expenditure at the maximum levels expended in the previous three years and to give complete information regarding the transfer of technology, which has been accomplished. This highlights the attention given by the government to strengthen the healthcare in India, by ensuring the availability of the drugs to the people at cheap prices.