Jubilant Organosys to acquire US pharma company

EPP News Bureau - Mumbai

Jubilant Organosys Ltd, a composite pharmaceuticals industry player, has signed a Memorandum of Understanding (MoU) to acquire 75 per cent of the equity in a generic pharmaceutical company in the USA. The company to be acquired is in the business of generic drugs and has a US FDA approved manufacturing facility in the US, according to a press release.

It has five approved ANDAs and another three ANDAs filed and awaiting US FDA approval. In addition to these, the company also has a pipeline of 14 products, of which ANDAs for five products are expected to be filed during the calendar year 2005.

These will be complemented by 10 ANDAs that Jubilant Organosys will develop for the target company, the release added.

Jubilant will make a payment of US$ 8.25 million to the existing shareholders of the target company and invest an additional US$ 12 million in its growth capital over a period of two years. The acquisition will be value accretive.

The closing of proposed transaction is subject to the execution of a more comprehensive definitive document, said the release.

Commenting on the proposed acquisition, Shyam S Bhartia, chairman & managing director and Hari S Bhartia, co-chairman & managing director, Jubilant Organosys Ltd, said, ‘‘The acquisition is in line with our strategic intent of expanding our presence in regulated markets. Last year we moved in this direction by acquiring pharmaceutical companies in Belgium to have a presence in European markets and the US acquisition will help us in enhancing our presence in US, the largest generic pharmaceutical market in the world. This provides us access to new customer relationships in the US and a US-FDA approved dosage forms manufacturing facility.’’