SeQuent to own majority stake in a JV with Shasun Pharma for veterinary products
OrbiMed-backed Shasun Pharmaceuticals Ltd and SeQuent Scientific Ltd have signed a letter of intent (LOI) to form a joint venture company (JV) to develop, manufacture and sell veterinary products which will include Active Pharmaceutical Ingredients (API) and formulations in the global market.
SeQuent will own 73 per cent of the JVC while Shasun will own the remaining 27 per cent, as per a stock exchange disclosure on Monday. Both Shasun and SeQuent are publicly listed companies.
“The combination with Shasun will deliver synergies and technical arbitrage enabling the JVC to emerge as a global provider of animal health solutions,” Gautam Kumar Das, joint managing director of SeQuent, said.
The creation of the animal health company, which is subject to the requisite corporate and statutory approvals, is expected to be complete by Q1 2014, the release said. According to the LOI, both the companies will contribute in the JV by way of transfer of identified assets, contracts and licences. The firms did not disclose details of the existing assets which would be transferred as part of the venture.
“We share SeQuent’s passion for developing animal healthcare products and are confident that together we are well positioned to cater to the needs of the global market in the growing animal healthcare sector,” S Hariharan, CFO of Shasun, said.
OrbiMed is the second investor in Shasun. It invested around $10.23 million in the company in 2012. The company got its first investment of $4.90 million from GMO LLC in 2003. In 2006, Shasun acquired UK-based Rhodia Pharma Solutions for around $35 million.
(Edited by Joby Puthuparampil Johnson)