Orchid Chemical sells off its injectable pharma business

Orchid Chemicals and Pharmaceuticals sold off its generic injectable pharma business to Hospira, a US based diversified healthcare group for $400 million. The proceeds will be used to retire Orchid’s significant debt and to pursue new growth opportunities. The company announced that $260 millions will be used to settle its short-term debt of $110 million and $150 million FCCBs due in 2012. The balance will be invested in new areas and working capital.