UPDATE 1-K-V Pharma to sell generic unit to Zydus for $60 mln

Fri Jun 17, 2011 9:47am EDT

* K-V says divestment to help focus on women's health segment

* Shares up 16 pct (Follows alerts)

June 17 (Reuters) - K-V Pharmaceutical Co KVa.N said it agreed to sell its generic business unit to Zydus Pharmaceuticals, a subsidiary of India-based drugmaker Cadila Healthcare , for $60 million in cash.

K-V Pharma said its decision to divest Nesher Pharmaceuticals Inc to Zydus is in line with its strategy to focus on women's health segment.

Jefferies & Co acted as financial adviser to K-V Pharma for the deal, which is expected to close in the second quarter of KV's 2012 fiscal year.

Class A shares of K-V were up 11 percent at $2.66 in morning trade on the New York Stock Exchange. They had touched a high of $2.75 earlier in the session. (Reporting by Anand Basu in Bangalore; Editing by Sriraj Kalluvila)

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