AstraZeneca to receive up to $26.5m grant from promoter

Drug firm AstraZeneca Pharma India today said its Sweden-based promoter -- AstraZeneca Pharmaceuticals AB -- will provide a financial grant of up to USD 26.5 million (over Rs 140 crore) to the Indian firm over the next three years.

"The promoter, AstraZeneca Pharmaceuticals AB Sweden has decided a voluntary non repayable financial grant of nearly USD 22.5 million to 26.5 million over the three years (FY14-FY16) under a subvention agreement," AstraZeneca Pharma India said in a filing to the BSE.

AstraZeneca Pharmaceuticals AB would be provide the first tranche of USD 14 million (Rs 74 crore) to the Indian firm in the current financial year, it added.

Meanwhile, the AstraZenaca Pharma India management today presented a comprehensive business plan to the company's board for returning to sustainable profitability.

Also read: See 100-120 bps margin improvement in FY14: Alembic Pharma

As part of the strategy, the company plans to commence operations at the new tablet facility, the company said.
    
Further the company wants to further strengthen its brand presence and also increase the effectiveness of its sales force, it added.

Shares of AstraZeneca today closed at Rs 839.15 on the  BSE, up 5.43 percent from their previous close.