Kilitch Drugs (India) Limited has announced plans to sell its entire shareholding in its Ethiopian subsidiary, Kilitch Estro Biotech PLC (KEB), to HarmeeCare Pharmaceuticals, an Ethiopian state-owned enterprise, in a transaction valued at US$14 million. The proposed divestment, approved by the company’s Board of Directors, is part of Kilitch Drugs’ strategy to reallocate capital towards its Indian operations, reduce debt and expand its pharmaceutical manufacturing business. The transaction is expected to be completed by January 31, 2027, subject to shareholder approval, regulatory requirements and completion of the necessary documentation.
The company plans to use the net proceeds to reduce existing borrowings, lower finance costs and support the phased expansion of its manufacturing facility at Pen in Maharashtra. The Pen facility is expected to manufacture liquid injectable vials, lyophilised injectable vials and ophthalmic eye drops. Kilitch Drugs also plans to develop and manufacture GLP-1 (Glucagon-Like Peptide-1) therapies as it prepares to enter a segment where patents on key molecules are due to expire in various international markets.
The company intends to pursue European Union Good Manufacturing Practice (EU GMP) and Pharmaceutical Inspection Co-operation Scheme (PIC/S) accreditations to support its plans to enter regulated export markets. These initiatives remain subject to applicable regulatory approvals.
Bhavin Mehta, Whole-Time Director of Kilitch Drugs (India) Limited, said the sale would help the company strengthen its balance sheet and accelerate investment in domestic manufacturing. He said the company’s priorities included expanding its manufacturing capabilities, entering pharmaceutical segments with growth potential and increasing its presence in international regulated markets. The phased development of the Pen facility is expected to support these plans.
Although Kilitch Drugs intends to exit ownership of its Ethiopian subsidiary, it proposes to maintain a commercial relationship in the country through a long-term supply and technical services agreement with HarmeeCare Pharmaceuticals. The proposed arrangement is intended to support the continued operation of the Ethiopian manufacturing facility while allowing Kilitch Drugs to retain a business presence in the region.
Kilitch Drugs specialises in the manufacture and distribution of parenteral formulations, oral solid dosage forms and effervescent products. The company’s planned investment in its Indian operations is aimed at expanding manufacturing capacity and supporting its future product portfolio. The proposed sale marks a change in the company’s international business structure, with capital from the transaction intended to support debt reduction and domestic expansion. Completion will depend on the required approvals and transaction formalities.
