Pharmaceutical and life sciences firm Jubilant Life Sciences Ltd will explore an acquisition of a specialty pharma business in the US.
The acquisition will be done through the firm's Singapore-based wholly-owned subsidiary Jubilant Pharma Ltd, it said in a stock market disclosure.
The acquisition is expected to provide a competitive edge for Jubilant Pharma's existing business, it said.
Jubilant Life Sciences' specialty pharmaceuticals (sterile products) vertical includes contract manufacturing operations (CMO) of sterile injectables and non-sterile products businesses, radiopharmaceuticals, allergy therapy products and drug discovery solutions. Its total revenues from this vertical increased to Rs 1,613.8 crore in the financial year ended 31 March 2016 from Rs 1,283.2 crore in the previous year, according to its annual report 2016.
Jubilant Pharma runs the global pharmaceutical business of Jubilant Life Sciences through its subsidiaries in various countries, including the US, Canada, Europe and India. In late 2013, Jubilant Life Sciences had announced plans to transfer its pharmaceutical business to Jubilant Pharma.
These subsidiaries of Jubilant Pharma are engaged in manufacturing and marketing of various pharmaceutical products and services like active pharmaceutical ingredients (APIs), oral dosage forms (tablets and capsules), contract manufacturing of sterile injectables, ointment, creams and liquids, allergy therapy products and radiopharmaceutical products.
Jubilant Life Sciences' international revenues accounted for 73% of the revenue mix at Rs 4,259.5 crore in the financial year ended on 31 March 2016 driven by revenues from North America, Europe and Japan.
The company, which counted General Atlantic as its investor, continues to expand its presence globally with its products and services reaching out to customers in over 100 countries across the globe, the annual report said.
In FY2015-16, revenues from the pharmaceuticals segment alone were at Rs 3054.8 crore and contributed 53% to the overall income from operations, it said in the annual report. “This was on account of healthy growth in our radiopharmaceuticals and APIs businesses,” it added.
Indian pharmaceutical firms have been making extensive strategic bets in the past years and this trend is expected to continue going forward.
Early in January, Cadila Healthcare Ltd, which operates under the brand Zydus Cadila, purchased US-based specialty pharmaceuticals company Sentynl Therapeutics Inc.
In January, Billionaire Ajay Piramal-led Piramal Enterprises Ltd said it will acquire a portfolio of drugs from UK-based Mallinckrodt LLC for $171 million (Rs 1,163 crore) in its seventh pharmaceutical deal within two years.
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