Sun Pharmaceutical Industries and Strides Arcolab announced that they have entered into a definitive agreement related to erstwhile Ranbaxy's 'Solus' and 'Solus Care' divisions operating in the central nervous system (CNS) segment in India.

The agreement involves transfer of these two marketing divisions, along with employees to Strides for a consideration of Rs 1.65 billion.

As per IMS July 2015 MAT report, all the products of these two divisions together accounted for approximately Rs 920 million in sales.

Commenting on the transaction, Abhay Gandhi, CEO, India Business, Sun Pharma said, "The agreement with Strides is part of our strategy to firmly consolidate our CNS business in India. Post successful completion of Ranbaxy’s merger we had an opportunity to assess the entire portfolio of our India business."

Subroto Banerjee, president, Brands, India of Strides said, "The acquisition of Solus and Solus Care divisions is of strategic significance to the growth of our branded business in India. The rich product portfolio and capable teams of these two divisions will help us establish a strong footing in the fast growing CNS market of India."

The transaction is subject to approval from the Competition Commission of India and other customary closing conditions.

Shares of the Strides Arcolab gained Rs 52.35, or 4.57%, to settle at Rs 1,198.20. The total volume of shares traded was 77,981 at the BSE (Monday).