Kilitch Drugs to divest Ethiopian subsidiary for $14-M

Mumbai-headquartered, publicly listed Kilitch Drugs is to divest its entire shareholding in its Ethiopian subsidiary, Kilitch Estro Biotech, to the Ethiopian state-owned enterprise HarmeeCare Pharmaceuticals, for USD 14 million. The transaction is expected to close by January 2027.Kilitch Estro Biotech operates a manufacturing facility in Ethiopia. Kilitch Drugs plans to maintain its commercial presence in the region through a long-term supply and technical services agreement with the acquirer, which will support ongoing operations at the facility.Kilitch Drugs will use the proceeds from the sale for reducing existing borrowings, lowering finance costs, and supporting the phased expansion of its new manufacturing facility in Pen, Maharashtra, where the firm plans to produce liquid and lyophilised injectable vials, ophthalmic eye drops, and GLP-1 therapies.