Jubilant Life Sciences advances after signing term sheet with Cyclopharm

Jubilant Life Sciences rose 3.93% to Rs 325.30 at 09:45 IST on BSE after the company signed term sheet with Cyclopharm for exclusive license to market Technegas in the United States.

The announcement was made before market hours today, 14 September 2015.

Meanwhile, the BSE Sensex was down 12.43 points, or 0.05%, to 25,597.78

On BSE, so far 58,123 shares were traded in the counter, compared with an average volume of 3.29 lakh shares in the past one quarter.

The stock hit a high of Rs 326.90 and a low of Rs 317.60 so far during the day. The stock hit a 52-week high of Rs 373 on 28 August 2015. The stock hit a 52-week low of Rs 116.10 on 17 December 2014.

The stock had outperformed the market over the past one month till 11 September 2015, rising 0.14% compared with 8.10% fall in the Sensex. The scrip had also outperformed the market in past one quarter, surging 87.59% as against Sensex's 2.88% decline.

The mid-cap company has an equity capital of Rs 15.93 crore. Face value per share is Re 1.

Jubilant Life Sciences announced today, 14 September 2015 that one of its wholly-owned subsidiaries, Jubilant DraxImage Inc. (DraxImage) has signed a term sheet, subject to satisfactory due diligence and execution of the Definitive Agreement and other necessary approvals, with Cyclopharm (CYC), providing DraxImage an exclusive license to market and distribute Technegas in the United States. Technegas is an imaging agent primarily used in Pulmonary Embolism (blockage of lung arteries) and is currently being sold in 55 countries including EU, Japan and Canada by CYC.

DraxImage will assist CYC with the development and financing of the phase III clinical trials for Technegas, and any other steps required to file for and obtain USFDA approval, Jubilant Life Sciences said.

As per the primary commercial terms of the term sheet, DraxImage will provide at risk up to $4.5 million to fund the USFDA clinical trial currently under development with any additional costs to be funded by both parties equally. Upon successful completion of the USFDA trial, DraxImage will be able to convert USFDA trial costs into CYC common stock up to a maximum of 15% of the total CYC shareholding. DraxImage will pay CYC a 17.5% royalty on sale in addition to an agreed margin above the cost of goods sold, Jubilant Life Sciences said.

On a consolidated basis, Jubilant Life Sciences' net profit surged 2579.08% to Rs 128.06 crore on 1.5% decline in net sales to Rs 1438.38 crore in Q1 June 2015 over Q1 June 2014.

Jubilant Life Sciences is an integrated global Pharmaceutical and Life Sciences company engaged in manufacture and supply of APIs, Solid Dosage Formulations, Specialty Pharmaceuticals and Life Science Ingredients. It also provides services in Contract Manufacturing and Drug Discovery Solutions.

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