Wockhardt, a debt ridden pharma major, and Abbott have jointly decided to terminate the nutritional business agreement signed by them in July 2009 as Wockhardt was unable to resolve debt restructuring issues with some of its lenders. Earlier, the move to sell assets of Wockhardt was rejected by several investors and bond holders. Wockhardt shares gained today over Rs 4 and touched to Rs 142.80 in the morning session on Bombay Stock Exchange (BSE).

Wockhardt has planned to divest its nutritional business to Abbott for a total consideration of Rs 630 crore (US$130 million) in cash. These transactions also included nutrition manufacturing facilities located in Lalru and Jagraon, India, Carol Info Services and certain Wockhardt subsidiaries and group companies.

Wockhardt has a significant presence in India's paediatric nutritional category with Farex, Dexolac and Nusobee infant formulas and Farex weaning cereal. The adult protein supplement, Protinex is the segment leader.

Abbott has approximately 1,500 employees in India across all of its businesses and has been operating in India since 1910. Abbott offers Isomil, PediaSure , Ensure and Glucerna in India and plans to introduce additional products from its broad-based nutritional portfolio to Indian consumers in the coming years. Abbott's international nutrition business is an important growth driver for the company and has had particularly strong growth in China, Southeast Asia and Latin America in recent years.