Jubilant celebrates US acquisition

DALAL STREET SPIKES

Domestic pharma company Jubilant Organosys hit an all-time high in intra-day trades on announcement of a US acquisition. The stock was up 1.2 per cent to Rs 923.05 after hitting the day's high of Rs 940.

The company announced that it has signed an MoU to acquire 75 per cent of the equity in a generic pharmaceutical company in the US.

Jubilant will make a payment of $8.25 million to the existing shareholders of the target company and invest an additional $12 million in its growth capital over a period of 2 years.

The acquisition will be value accretive. The closing of proposed transaction is subject to the execution of more comprehensive definitive documents.

In addition to these, the company also has a pipeline of 14 products, of which ANDAs for 5 products are expected to be filed during the calendar year 2005. These will be complemented by 10 ANDAs that the company will develop for the target company.