Drug firm Sanofi India on Wednesday said its board has approved its plan to sell the nutraceuticals business to Universal Nutriscience for Rs 587 crore.

“The board of directors of Sanofi India has approved a transaction for the slump sale and transfer of the company’s nutraceuticals business on a going concern basis to Universal Nutriscience for a consideration of Rs 587 crore, including debt like obligations,” the company said in a communication to the bourses.

Sanofi added the transaction is likely to be completed within the next three months, subject to the fulfilment of conditions as set out in the business transfer agreement. Sanofi’s nutraceuticals business comprises 16 brands and 30 stock-keeping units (SKUs).

“These, along with related business assets and liabilities, including contracts, intellectual property rights, inventory, and all employees associated with this business will

transition to Universal

Nutriscience,’’ the company added.

Shares of Sanofi India on Wednesday closed 1.80 per cent, or Rs 142.95, higher at Rs 8,102.85 on the BSE.

The company said the decision to divest will help it to invest and focus on the strategic growth pillars, while allowing the nutraceuticals business and the people associated with it to significantly benefit in a firm specialised in nutraceuticals and wellness.

Sanofi India added that it undertook a thorough competitive auction process with a view to obtain the best possible transaction terms.

“We have carefully selected Universal Nutriscience whose mission is to grow the business to provide more patients with increased access to the range of nutraceuticals,’’ said Rajaram Narayanan, managing director of Sanofi India.