Jubilant Life Sciences Ltd said on Friday it has agreed to purchase the radiopharmacy business of Florida, US-based Triad Isotopes Inc. to boost its nuclear medicine business.
The acquisition will provide Jubilant with direct access to hospital networks with ability to deliver 3 million patient doses annually through about 1,700 customers, the company said in a statement.
It added that the acquisition will help it forward-integrate in the radiopharmaceutical business, thereby helping it serve healthcare providers and patients with radiopharmaceutical products.
The Noida, Uttar Pradesh-headquartered company didn’t disclose financial details of the deal.
The company is making the acquisition through its Singapore-headquartered unit Jubilant Pharma Ltd, which will fund the acquisition through its internal accruals. The deal is likely to be earnings accretive in the first full year of operations, Jubilant said.
The transaction is subject to customary closing conditions, including regulatory approvals.
Triad was founded in 2006. It recorded revenue of more than $225 million in 2016 and posted an operating profit. It operates the second-largest radiopharmacy network in the US with more than 50 pharmacies, distributing nuclear medicine products to regional health systems, standalone imaging centres, cardiologists and hospitals.
Jubilant had given an indication of the acquisition earlier this month when it said it was exploring the purchase of a specialty pharmaceutical business in the US.
Jubilant’ specialty pharmaceuticals vertical includes contract manufacturing operations 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 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. Jubilant Life Sciences had announced plans to transfer its pharmaceutical business to Jubilant Pharma in late 2013.
These subsidiaries of Jubilant Pharma make and sell various pharmaceutical products and services like bulk drugs, tablets and capsules, sterile injectables, ointment, creams and liquids, allergy therapy products and radiopharmaceutical products.
Jubilant Life Sciences’ international business accounted for 73% of its revenue of Rs 4,259.5 crore in 2015-16, driven by income from North America, Europe and Japan.
In 2015-16, revenue from the pharmaceuticals segment was Rs 3,054.8 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 likely to continue.
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 would acquire a portfolio of drugs from UK-based Mallinckrodt LLC for $171 million in its seventh pharmaceutical deal within two years.