Pakistani pharma Searle to transfer biologic portfolio to Nextar
- Company plans a significant Rs4 billion investment into its subsidiary, Nextar Pharma
Searle Company Limited plans a Rs4 billion investment into its indirect subsidiary, Nextar Pharma, to acquire its biological products portfolio, pending shareholder and regulatory approvals.
- Searle's Rs4 billion investment in Nextar Pharma.
- Acquisition of the biological products portfolio.
- Nextar Pharma's rebranding to Searle Biopharma.
The Searle Company Limited on Tuesday announced a major restructuring plan aimed at consolidating its biological products business under a dedicated subsidiary, as part of efforts to streamline operations and improve efficiency across the group.
The listed pharma shared this development in a notice to the Pakistan Stock Exchange (PSX).
The pharma said that its board had approved a proposal to recommend an investment of up to Rs4 billion into the share capital of its indirect subsidiary, Nextar Pharma (Private) Limited.
The notice further stated that the investment would be made indirectly through the company’s wholly owned subsidiary, Searle BioSciences (Pvt) Limited, and is intended to facilitate the acquisition of the company’s biological and associated products portfolio.
The proposed transaction remains subject to shareholder approval in accordance with Section 199 of the Companies Act, 2017, as well as other regulatory and corporate approvals.
Moreover, the board has proposed the transfer of certain products of the company, comprising the portfolio of and associated products, to its indirect subsidiary, i.e. Nextar
“The aforesaid transaction is being undertaken as part of the company’s strategic initiative to optimise its product portfolio and enhance operational efficiencies on a consolidated basis within the group,” read the notice.
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Moreover, the notice also said that Nextar was in the process of changing its name to Searle Biopharma (Private) Limited.
“The proposed name, which better reflects the business of the subsidiary, has been reserved by the SECP for such purpose,” the company informed the bourse.
SEARL was incorporated in Pakistan as a private limited company in 1965 and was later converted into a public limited company.
The principal activity of the company is the manufacturing and sale of pharmaceutical, consumer health and nutritional products. SEARL is a subsidiary of International Brands (Private) Limited.
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