Dishman concludes deal with Solvay

Dishman Pharmaceuticals & Chemicals Ltd (DPCL) has informed that it has concluded the deal with Solvay Pharmaceuticals BV (Solvay), the Netherlands, for acquiring their fine chemicals, vitamim D and vitamin D analogues business. Earlier, an MOU for this was signed on July 09, 2007. As part of this deal all facilities, people and activities located at Solvay's Veenendaal site in the Nether lands and technology, patent and intellectual property rights for fine chemicals, vitamin D and vitamin D analogues business were transferred to Dishman.

The Veenendaal site of Solvay Pharmaceuticals houses the business group Vitamins &
Chemicals. The manufacturing of vitamin D analogues takes place on Solvay's site in
Weesp. Cholesterol is used in pharmaceuticals, cosmetic and crustacean feed applications.
Vitamin D analogues are used for food and pharmaceutical applications, and fall in the
category of high potency products.

Dishman will retain production of cholesterol and vitamin D analogues at Veenendaal and transfer the vitamin D3 production to its Indian plants.

Sale of Solvay's site in Veenendual is a result of Solvay Pharmaceuticals' strategy to focus on the main therapeutic area of cardiometabolic and neuroscience treatments and hive off the non-core business.

Dishman has a pre-existing long term relationship with Solvay for contract manufacturing of a patented API and intermediates. Further, in 2001, Dishman and Solvay had entered into Toll Manufacturing Agreement to convert a raw material supplied by Solvay into an intermediate of Vitamin D3. With the experience gained and technology available with Dishman, the acquired business will considerably add value to Dishman's business.

According to Mr. J R Vyas, Managing Director of the Company, acquisition of cholestrol, vitamin D and Vitamin D analogues business is a step in the right direction. It will not only increase the basket of products at Dishman but also brings new customer relationships.