Chennai-based Shasun Pharmaceuticals Ltd has signed a letter of intent (LoI) with Bangalore-based pharmaceutical firm SeQuent Scientific Ltd to develop, manufacture and sell veterinary products, including active pharmaceutical ingredients (API) and formulations, in the global market.
The partners would set up a joint venture company, of which 73 per cent would be owned by SeQuent and 27 per cent by Shasun. Contributions will be made by both the companies by way of transfer of identified assets, contracts and licences.
This would also be an exposure for Shasun into the veterinary medicine segment, where it has not been operating so far, according to company officials.
"We have signed an LoI and the rest of the procedures will follow. We are expecting the JV company to be ready for operation by March 2014," said S Hariharan, chief financial officer, Shasun Pharmaceuticals Ltd.
While the company does not have an exposure in the segment, it would bring in contacts that could be used for the growth of the JV, he added.
The JV firm would also have a manufacturing facility in Visakhapatnam, where Shasun is currently developing its manufacturing facilities. It plans to sell the products to both domestic and export markets, he said.
In a statement, Gautam Kumar Das, joint managing director of SeQuent said: "The combination with Shasun will deliver synergies and technical arbitrage enabling the JV to emerge as a leading global provider of animal health solutions."
SeQuent Scientific has presence in various pharmaceutical segments including APIs, animal health, analytical services, contract research and manufacturing services, and speciality chemicals. The company claims to be the world's largest producer of anthelmintics (a drug used to treat infections caused by parasitic worms) and a strong player in the veterinary API business.
Shasun Pharma manufactures active pharmaceutical ingredients and formulations and offers contract research and manufacturing services for APIs in India and the UK.