JBCPL invests $5 mn in South Africa's Biotech

New Delhi, Dec 14: JB Chemicals&Pharmaceuticals Ltd (JBCPL) today announced it has signed a definitive agreement to make a strategic investment of 5.1 million dollars in Biotech Laboratories of South Africa.

The investment will entitle the company to own significant minority stake of the issued capital in Biotech with an option to increase its holding further in future.

''This investment in Biotech results in considerable synergies for both companies and will allow JBCPL to tap the lucrative high growth South African and other African markets through the launch of its ethical and OTC range of products including Doktor Mom,'' company Chairman and Managing Director J B Mody said in a statement.

South Africa is the largest pharmaceutical market in Africa, valued at close to three billion dollars.

The transaction, subject to requisite approvals and conditions precedent, is expected to be completed during the first quarter of 2007.

Biotech owns a significant number of product dossiers. ''JB Chemicals&Pharmaceuticals plans to leverage the same by undertaking the manufacturing of these products through site variation opportunities at its own facilities in India,'' the statement added.

UNI