Jubilant picks up 80 pc in Belgium pharma company

Pharma major Jub ilant Organosys today announced that it has acquired 80 per cent equity in Belgium’s Pharmaceutical Services Inc NV an...

Pharma major Jub ilant Organosys today announced that it has acquired 80 per cent equity in Belgium’s Pharmaceutical Services Inc NV and PSI supply NV for Rs 75 crore in an all cash deal.

The acquisition was done through Jubilant’s fully-owned subsidiary in Belgium, Jubilant Pharma NV, floated primarily to facilitate the process.

‘‘The acquisition furthers our endeavour to strengthen our position in global pharma business and facilitate Jubilant’s entry into wide range of formulated products,’’ the company’s CMD, Shyam S Bhartia, and co-chairman and managing director, Hari S Bhartia, said.

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Europe is an emerging market for generic products and through this acquisition the company sought to establish a firm presence in the region, they added.

The acquisition would enable Jubilant, a custom research and manufacturing services and active pharmaceuticals (APIS) company, to increase its presence across the pharmaceuticals value chain from manufacturing of APIS to sale of formulated products.

PSI has a sizeable portfolio of 19 dossiers with 31 more at different stages of filing and development.

PSI recorded sales of Rs 53 crore for the financial year 2003-04 and its gross profits were expected to be about Rs 15.6 crore during the period, the release said.

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The move would also enhance Jubilant’s life science business in the European market that contributed 38 per cent of total export revenues in 2003-04, it said. The founder of PSI, Lieve Vermassen, would hold the rest 20 per cent shares of the company, Jubilant said, adding she would continue to look after the business as the MD and CEO of PSI.