Jubilant Pharmova, through a chain of subsidiaries, has proposed to set up a unit to acquire MNC pharma player Pierre Fabre’s R&D Centre in France, the company informed stock exchange through a regulatory filing on August 16.
"This transaction will enable Jubilant Biosys to establish a centre of excellence in Europe for Biologics and Antibody Drug Conjugate (ADC), which opens up a total addressable market of $500 million", the company said.
Jubilant Biosys - a subsidiary of Jubilant Pharmova - will invest up to Euro 14.4 million over seven years, including Euro 4.4 million for an 80% stake in the new company being set up.
"...a wholly owned subsidiary of the Company, has signed and issued a “put option offer” to Pierre Fabre Laboratories, which sets forth an offer to acquire 80% equity capital (approx. Euro 4.4 million over a period of 2 years) in a new company to be incorporated in France, which new company shall acquire Pierre Fabre’s R&D Centre (Including R&D Site and R&D activities) at Saint Julien, France," Jubilant Pharmova said in an exchange filing.
Jubilant added that Pierre Fabre Labs may invest about Euro 1.1 million over two years for a 20% stake in the new company for a maximum period of 5 years. The facility offers better customer connect with European companies and a chance to generate incremental revenue for Indian facilities, Jubilan said, adding that the acquisition also helps serve US clients more effectively because of the time zone.
Jubilant added that in the medium term, revenue from the European facility may reach Euro 10-12 million. The French R&D centre of Pierre Fabre has capability of conducting discovery and early development in cancer treatment.
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