Ranbaxy to up Zenotech Lab stake to 45 per cent for Rs214 crore
03 Oct 2007
Mumbai:
Drug major Ranbaxy Laboratories Limited (Ranbaxy) will pay Rs214 crore to raise
its stake in Hyderabad-based pharma company Zenotech Laboratories Limited (Zenotech)
from the current 7 per cent to 45 per cent. Ranbaxy
will also make an open offer as per SEBI`s takeover norms to buy up to 20 per
cent additional stake from public shareholders. The open offer will be at Rs160
per share. After
the open offer, the existing promoters will hold 25 per cent stake in the expanded
equity capital of Zenotech. Jayaram Chigurupati will continue as managing director
of the company, Ranbaxy said in a statement. "The
increasing importance of biologics in global pharmaceutical industry and opening
of generic biologics in the regulated market makes it opportune for Ranbaxy to
enhance its presence in this area. Speciality injectables that include oncology
products constitute an attractive segment that underpin our strategic intent,"
Ranbaxy CEO and managing director Malvinder Mohan Singh said. "Ranbaxy''s
increase in stake will enable Zenotech to concentrate on its core competencies
of cutting-edge drug development and specialised manufacturing. Access to Ranbaxy''s
unmatched global market reach, quality compliance and regulatory and IP expertise
will enable us to take the business into its next phase of growth," said
Chigurupati. Zenotech
has received regulatory approvals for three oncology biopharmaceuticals - 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 seven biopharmaceutical
products in different stages, all developed in-house. It has state-of-the-art
manufacturing facilities in Hyderabad, with R&D facilities in Hyderabad and
New Jersey, US. The
global biopharmaceuticals market is valued at around $65 billion at innovator
prices and Zenotech''s pipeline addresses a third of this market. The oncology
market is worth over $35 billion and is considered among the fastest growing therapeutic
segments globally.
