Biocon SA, the wholly owned subsidiary of Bangalore-based biopharmaceuticals company Biocon Ltd, is acquiring around 49% stake in Biocon Biopharmaceuticals Pvt Ltd (BBPL) held by CIMAB SA, a Cuban company. CIMAB SA was a joint venture partner with Biocon, the company informed the stock exchange. The financial details of this transaction were undisclosed.
The JV was engaged in manufacturing products based on the monoclonal antibodies in their facility in Bangalore. Post this acquisition, BBPL will become a wholly owned subsidiary of the company.
Both the companies, however, plan to continue their partnership on research, development and commercialisation of novel biopharmaceutical products. CIMAB SA has similar joint ventures agreement in China.
The shares of Biocon were traded at Rs 305.10, up by Rs 9.15 or 3.09% at 12:10 pm in the BSE.
Biocon has been eyeing possible acquisitions in India and overseas geographies for sometime. It has signed an MoU with Malaysia's Biotechnology Corporation to explore collaboration and potential investment in Malaysia's biotechnology industry.
The company was earlier in talks with Mumbai-based Siro Clinpharm Pvt Ltd, a global contract research organisation (CRO), however, the development of the acquisition is not known. Siro Clinpharm is backed by two private equity investors Kotak Private Equity and the 3i Group, and jointly control nearly 70% stake of the company.
In the third quarter ended by December 31, 2009, Biocon has seen three fold increase in its revenue at Rs 80.8 crore over the same period a year ago. Total income of the company rose to Rs 641.5 crore for the quarter ending December, against Rs 452.4 crore in the corresponding period last year.