Kilitch Drugs Sells Ethiopia Unit for $14 Million

Kilitch Drugs (India) will sell its entire stake in its Ethiopian subsidiary, Kilitch Estro Biotech PLC, to HarmeeCare Pharmaceuticals for $14 million, the Mumbai drugmaker said on Friday. The deal forms part of a plan to reshape the company's portfolio, free up cash and put more investment into its pharmaceutical manufacturing operations in India. The board of Kilitch Drugs has approved the transaction, which is expected to close by January 31, 2027. The announcement was made on Friday, October 23, 2026. Kilitch Drugs (India) Ltd is listed on the National Stock Exchange under the ticker KILITCH.

The proposed sale is part of a broader strategy to optimise the business portfolio, strengthen financial flexibility and speed up investment in pharmaceutical manufacturing in India. The company said the divestment will free capital for higher-growth opportunities in India, debt repayment and expansion of its core pharmaceutical business.

What the company will do with the money

The company said it will use the net proceeds to cut existing borrowings, lower finance costs and fund the phased expansion of a new manufacturing facility at Pen in Maharashtra. The divestment will also allow capital to move toward higher-growth opportunities in India. To keep a commercial presence in Ethiopia, the company proposes to enter into a long-term supply and technical services agreement with HarmeeCare Pharmaceuticals, an Ethiopian state-owned enterprise. The arrangement is expected to support continued operations of the Ethiopian manufacturing facility and an ongoing commercial relationship in the region.

"The divestment of our Ethiopian subsidiary will enable us to unlock capital, strengthen our balance sheet and accelerate expansion plans in India," Bhavin Mehta, whole-time director of Kilitch Drugs, said.

Pen plant and the GLP-1 bet at Kilitch Drugs

The Pen facility will sit at the centre of the company's next phase of growth. Building on its established expertise in aseptic manufacturing, the company plans to manufacture liquid injectable vials, lyophilised (freeze-dried) injectable vials and ophthalmic eye drops at the site. The company also plans to develop and manufacture GLP-1 (glucagon-like peptide-1) therapies, a fast-growing category of obesity and diabetes drugs that is drawing heavy industry attention as patents on key products begin to expire across international markets.

Kilitch Drugs also intends to pursue EU GMP (European Union Good Manufacturing Practice) and PIC/S (Pharmaceutical Inspection Co-operation Scheme) accreditations to strengthen its presence in regulated export markets, subject to regulatory approvals. The accreditations would open doors to markets with stricter manufacturing standards than India.

The company called the sale a strategic shift that redirects capital toward domestic expansion, debt reduction and entry into high-growth segments such as GLP-1 therapies. Under the proposed transaction, HarmeeCare Pharmaceuticals will acquire the entire shareholding of Kilitch Estro Biotech PLC, with completion expected by January 31, 2027.

Why Kilitch Drugs is leaving Ethiopia

The buyer will take 100 percent of Kilitch Estro Biotech PLC under the proposed transaction. Kilitch Drugs described the move as portfolio optimisation aimed at financial flexibility: selling an overseas asset to concentrate resources where growth is faster. The company already produces parenteral formulations, oral solid dosage forms and effervescent products from its registered manufacturing unit in Pawane village, Navi Mumbai, and distributes them to domestic and international markets. The Ethiopian exit keeps that focus on India, with the Pen plant as the main outlet for the freed-up capital.