Jubilant Pharmova arm to pick up 80% stake in Pierre Fabre’s centre

19 Aug 2024 , 01:36 PM

On Friday (August 16), drug company Jubilant Pharmova Ltd announced that its subsidiary Jubilant Biosys Ltd, through Jubilant Biosys Innovative Research Services Pte Ltd (JBIRSPL), will acquire an 80% stake in Pierre Fabre Laboratories’ Research & Development Centre in Saint Julien, France.

Jubilant Biosys Innovative Research Services Pte Ltd is Jubilant Biosys’ subsidiary. The transaction, estimated at around €4.4 Million over two years, will be carried out by a newly formed business in France, which will take over the R&D location and its operations.

This deal, which aims to boost Jubilant Biosys’ expertise in biologics and antibody-drug conjugates (ADC), is subject to PF’s works council review and Pierre Fabre’s approval of the offer. Furthermore, the transaction necessitates the completion of formal agreements and the fulfilment of normal closing requirements.

Following the successful completion of the deal, the new firm will run the R&D Centre and collaborate with prominent pharmaceutical and biotech companies in Europe and the United States. The acquisition will allow JBL to expand its drug development portfolio, particularly in the biologics and ADC sectors, which are significant growth areas for the firm.

As part of the arrangement, Pierre Fabre may retain a 20% ownership in the new company, investing over €1.1 Million over two years. This minority stake would be kept for up to five years, during which Pierre Fabre might continue to assist the new firm in transforming the R&D Centre into a completely autonomous contract research organisation (CRO).

Importantly, Pierre Fabre will not have access to any private information or intellectual property associated with the R&D Centre during this time. Pierre Fabre has also agreed to engage services from Jubilant Biosys for €7 Million over the first four years of the agreement.

At around 10.47 AM, Jubilant Pharmova was trading 1.18% higher at ₹864, against the previous close of ₹853.90 on NSE. The counter touched an intraday high and low of ₹886, and ₹855.60, respectively.

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