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Ranbaxy Lab to pick up stake in Jupiter Bioscience
By agencies
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Friday, 06 April 2007, 17:30 IST
New Delhi: As part of its product portfolio expansion through partnerships and strategic investments, Ranbaxy Laboratories said it will pick up stake in Jupiter Bioscience, a maker of specialized organic compounds.
"This is an opportunity for us to expand our product portfolio and we will go with the 14.9 percent of enlarged capital of Jupiter Biocscience,subject to the completion of due diligence" Ranbaxy Laboratories CEO and MD Malvinder Singh told reporters here.
He, however, declined to comment on the valuation of the deal. On 6 April, Jupiter Bioscience had informed bourses that it plans to allot preferential equity share warrants to Ranbaxy. The firm said it would seek the approval for the proposal from its Board of Directors on 12 April.
The proposed warrant allotment is a part of the term sheet signed between the companies earlier, which includes forging a strategic business tie-up on peptide pharmaceuticals for the global market, Jupiter said.
Singh today said the products from these partnerships involving Active Pharmaceutical Ingredients (APIs) and peptides would see huge upsides for the company going forward in the period 2008-13.
Jupiter Bioscience makes specialized organic compounds like peptides and has a wholly owned US subsidiary Jupiter Bioscience Inc to cater to markets of peptides and peptide components in the US, Europe, Canada and Japan.
Singh said his company was looking out for similar opportunities in India and abroad. Ranbaxy has already picked up significant stake in another API manufacturer, Krebs Biochemicals, by acquiring 10.50 lakh shares on preferential basis.