GURGAON, India, Oct. 3 /PRNewswire/ -- Ranbaxy Laboratories Limited (Ranbaxy) and Zenotech Laboratories Limited (Zenotech) today announced the signing of Definitive Agreements, providing for an increase in equity stake by Ranbaxy from its current 7% to 45% at a price of Rs. 160 per share aggregating to Rs. 214 Crores. This involves:
(a) Purchase of shares from the existing Promoters
(b) Preferential Offer to Ranbaxy by Zenotech
The above triggers a mandatory open offer by Ranbaxy to other shareholders of Zenotech, at a price of Rs. 160 per share or as determined by SEBI regulations.
Post the offer, the existing Promoter Group of Zenotech will have a 25% stake in its expanded equity capital. Dr. Jayaram Chigurupati shall continue as the Managing Director.
Speaking on the development, Mr. Malvinder Mohan Singh, CEO & MD, Ranbaxy, said, “The increasing importance of Biologics in the Global Pharmaceutical industry and the opening up of the generic Biologics in the regulated markets, makes it opportune for Ranbaxy to enhance its presence in this area. Speciality injectables, that include Oncology products, constitute an attractive segment that underpins our strategic intent. Having worked with Zenotech for almost two years, we believe that this investment and partnership provides a strong platform for us to leverage these opportunities.”
Commenting on the transaction, Dr. Jayaram Chigurupati said, “Ranbaxy’s increase in stake will enable Zenotech to concentrate on its core competencies of cutting edge Drug Development and Specialized Manufacturing. Access to Ranbaxy’s unmatched Global market reach, Quality & Compliance and Regulatory & IP expertise will enable us to take the business into its next phase of growth.”
Zenotech has received three Indian approvals for Oncology Biopharmaceuticals i.e. GCSF (Granulocyte Colony Stimulating Factor), GM-CSF (Granulocyte Macrophage Colony Stimulating Factor) and IL-2 (Interleukin-2). For the latter two, Zenotech is the first to receive approvals in India, and has a pipeline of further seven Biopharmaceutical products in different stages, all developed in-house. It has state-of-the-art manufacturing facilities in Hyderabad, India, while its R&D facilities are in Hyderabad and New Jersey, USA.
Speaking of the expanded relationship, Mr. Dipak Chattaraj, President, Business Development, Ranbaxy, said, “Over the past two years, we have shared a wonderful working relationship with great Chemistry between our two organizations. The decision to expand our engagement is a statement of our unified goal to make India a strong contender in the international Biopharmaceuticals market.”
Presently, the Global Biopharmaceuticals market is valued at app. USD 65 Bn at innovator prices and Zenotech’s pipeline addresses a third of this market. The Global Oncology market is worth over USD 35 Bn and is considered among the fastest growing therapeutic segments globally. Speciality Injectables are a high value addition segment, compared with orals and Ranbaxy plans to file seven US ANDAs from Zenotech facilities in the coming few months.
Zenotech Laboratories Limited is a Specialty Generic Injectables company with strong expertise in the area of Bio-technology. Zenotech’s predominantly high value injectables product portfolios serve niche therapy areas like Oncology and Anesthesiology. Zenotech has Research and Development facilities in India and in the U.S. Its oncology and biologics manufacturing facilities are located near Hyderabad, India.
Ranbaxy Laboratories Limited, India’s largest Pharmaceutical company, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranbaxy’s continued focus on R&D has resulted in several approvals in developed markets and significant progress in New Drug Discovery Research. The Company’s foray into Novel Drug Delivery Systems has led to proprietary “platform technologies,” resulting in a number of products under development. The Company is serving its customers in over 125 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 49 countries and manufacturing operations in 11 countries.
ramesh.adige@ranbaxy.comraghu.kochar@ranbaxy.comkrishnan.ramalingam@ranbaxy.com
CONTACT: Ramesh L. Adige, +91-124-4135000, ramesh.adige@ranbaxy.com, or
Raghu Kochar, +91-124-4135141, or Mobile +91-9811617256,
raghu.kochar@ranbaxy.com, Krishnan Ramalingam, +91-124-4135143, or Mobile
+91-9810042540, krishnan.ramalingam@ranbaxy.com, all of Ranbaxy; or
I.Srinivas of Zenotech Laboratories Ltd., +91-40-23540994, or Mobile:
+91-9966011494
Web site: http://www.ranbaxy.com//
