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Advanced Enzyme closes deal to buy majority stake in JC Biotech

By Joseph Rai

  • 02 Dec 2016
Advanced Enzyme closes deal to buy majority stake in JC Biotech
Credit: ThinkStock

Advanced Enzyme Technologies Ltd, which made a blockbuster listing earlier this year, said it has completed the acquisition of a 70% stake in bulk drugs maker JC Biotech Pvt Ltd for Rs 50.08 crore ($7.3 million).

The acquisition will help Advanced Enzyme in increasing its market share in its offerings to the Indian pharmaceuticals sector, it said in a filing to the stock exchanges.

JC Biotech, which is headquartered in Hyderabad, manufacturers an anti‐inflammatory enzyme API serratiopeptidase and has a R&D pipeline of biopharmaceutical molecules. It has more than 50% market share in the production of API enzyme serratiopeptidase, Advanced Enzyme said.

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Advanced Enzyme had said in early November that it planned to acquire a stake in JC Biotech.

JC Biotech has a production facility in Andhra Pradesh, and has the ability to expand its fermentation capacity, the statement said. It also has the technology for manufacturing algal DHA, an Omega 3 fatty acid which finds application in human nutrition.  

JC Biotech’s revenue was Rs 39 crore with a net profit of Rs 2.5 crore in 2015-16. It posted revenue of Rs 37.3 crore and Rs 24.1 crore in FY15 and FY14, respectively.

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Early in July, the initial public offering (IPO) of Advanced Enzyme was heavily oversubscribed. In August, the company made a strong stock market debut with its shares listing at a 35% premium to the issue price after its IPO turned out to be the second-biggest public issue in India by subscription in eight years.

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