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One of the leading contract drug maker companies operating in India, the Jubilant Organosys has announced on Saturday that it has recently acquired the Canadian specialty drug company, DRAXIS Health. The company officials have stated that the acquisition took an investment of $255 million (around Rs 1020 crore) and the board of DRAXIS has already given its unanimous approval to the deal. They added that they are expecting the transaction to be completed in the second quarter of 2008, after it gets the required approvals from the shareholder and court.
According to one of the top officials of the company, this is the second major acquisition of Jubilant in North America, as it did acquire the US injectable maker Hollister for $122 million in the month of April, 2007. The official said that the acquisition of DRAXIS is going to help the company to expand its contract manufacturing business in the regulated, high-growth and high-margin area of radiopharmaceuticals and injectables in India. DRAXIS usually markets its products in three different categories like the sterile products, non-sterile products and radiopharmaceuticals.
The Chairman And Managing Director of Jubilant, Mr. Shyam S Bhartia and the Co-Chairman and Managing Director of Jubilant, Mr. Hari S Bhartia were talking about the acquisition and said, "With this acquisition, Jubilant will be among the leading providers of contract manufacturing of small volume potentials to large pharmaceuticals and biotech companies in North America". They added, "Jubilant is committed to grow DRAXIS by supporting its management and employees through new product launches, entry into new markets and expansion of the customer base". The company has also released an official statement regarding the matter and the statement said that though the transaction agreement is containing the customary non-solicitation provisions, it does permit DRAXIS to terminate the arrangement and accept an unsolicited superior proposal, after fulfilling certain conditions. The statement added that DRAXIS has also agreed to pay Jubilant a break fee of $10.5 million, in case the transaction is not completed. Jubilant is now planning to fund the acquisition through a combination of cash-on-hand and debt and the transaction is not depending on any financing conditions.
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| Posted : 4/7/2008 |
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