According to an estimate, the sale of the division and other assets will fetch about Rs 150 crore for the company. This will enhance the company's networth and enable it to improve profitabilty, the sources said.

The company had developed a bulk drug manufacturing unit at Mekaguda village in Mahboobnager district of Andhra Pradesh, as per the US-FDA norms. The facility includes quality control and research and development departments apart from three manufacturing plants. Natco Pharma manufactures time-released drugs as contracted by companies like Ranbaxy, SmithKline Beecham and Cadila.

Natco Pharma, which is engaged in manufacture of bulk drugs, formulations, parenterals and biotechnology products, now plans to focus on high-value therapeutic segments like antibiotics, antiulcers and anticancers, thesources said.