Indian Drugmaker to Acquire 75 Percent of U.S. Generic Drug Firm

Indian drugmaker, Jubilant Organosys, plans to acquire 75 percent of an unnamed U.S. generic drug company, Jubilant announced.

Under a memorandum of understanding signed with the unidentified firm, Jubilant plans to make a payment of $8.3 million to the company's existing shareholders. Jubilant plans to invest an additional $12 million over a period of two years to acquire 75 percent of the U.S. company's equity.

"The acquisition is in line with our strategic intent of expanding our presence in regulated markets," Shyam Bhartia, chairman and managing director of Jubilant and Hari Bhartia, co-chairman and managing director of Jubilant said in a joint statement. "Last year we moved in this direction by acquiring pharmaceutical companies in Belgium to have a presence in European markets, and the U.S. acquisition will help us in enhancing our presence in the U.S."

The U.S. generic company has an FDA-approved manufacturing facility and five approved abbreviated new drug applications (ANDAs). In addition, the company has filed an additional three ANDAs with the FDA and is awaiting approval on these ANDAs, Jubilant said. The U.S. company also has a pipeline of 14 products and expects to file ANDAs for five of these products during 2005.