New Delhi, Oct 3 (UNI) Pharma major Ranbaxy Laboratories Ltd today signed an agreement with Zenotech Laboratories Ltd to increase its equity stake in the company from seven to 45 per cent at a price of Rs 160 per share aggregating to Rs 214 crore.
''The deal is to strengthen Ranbaxy's product line and will allow it to have a strong presence in the line of bio-pharma and specialised injectibiles, which includes oncology,'' company's Chief Executive Officer and Managing Director Malvinder Mohan Singh told reporters here.
After the offer, the existing promoter group of Zenotech will have 25 per cent stake in its expanded equity capital.
The company will make the mandatory open offer under the SEBI rules for additional 20 per cent stake in Zenotech, Mr Singh said.
Ranbaxy plans to file seven US ANDAs from Zenotech facilities in the coming few months.
The acquisition will enable Ranbaxy to control research and production of drugs based on generic biotechnology, or living cell-based products.
The company expects bio-pharma business to be worth around 100 billion dollars from the present 65 billion dollars and with a CAGR of 20 per cent it expects the 30 billion dollar injectible portfolio to have the biggest potential in the therapeutic area.
Mr Singh said, ''We want to be among the top five pharma players by 2012, for which we are increasing our product portfolio as well as looking for more tie ups.'' Zenotech Managing Director Jayaram Chigurupati said, ''Ranbaxy's increase stake will enable Zenotech to concentrate on its core competencies of cutting edge drug development and specialised manufacturing. Ranbaxy will be indulged in the marketing and provide quality compliance and regulatory and IP expertise to Zenotech's products.'' Mr Chigurupati will continue as the Managing Director of Zenotech.
Zenotech Laboratories Ltd is a speciality generic injectables company with strong expertise in the area of bio-technology. The company is the first to receive approvals in the country and has a pipeline of seven biopharmaceuticals products in different stages.
It has manufacturing plants in Hyderabad, while its reserach and developemnt facilities are in Hyderabad and New Jersey, US.