Jubilant Pharmova hits 52-week high after subsidiary buys 80% stake in Pierre Fabre Labs’ R&D centre

The company’s subsidiary, Jubilant Biosys Innovative Research Services, Singapore (JBIRSPL), has signed and issued a “put option offer” to Pierre Fabre Laboratories.

In a filing to the stock exchanges after market hours on Friday, Jubilant Pharmova said that Jubilant Biosys Innovative Research Services Pte Limited, Singapore, a subsidiary of Jubilant Biosys Limited, has signed and issued a “put option offer” to Pierre Fabre Laboratories, which sets forth an offer to acquire 80% equity capital in a new company to be incorporated in France.

Jubilant Biosys is a wholly-owned subsidiary of Jubilant Pharmova.

The new firm will acquire the stake in Pierre Fabre’s R&D Centre (Including R&D Site and R&D activities) at Saint Julien, France, at an investment of approximately Euro 4.4 million over a period of 2 years, the company informed the bourses.

After the transaction is closed, this new company will utilise the R&D Centre with the capability to collaborate with big pharma and biotech customers in Europe and the US, the filing said. “This contemplated transaction would enable JBL to strengthen its drug discovery capabilities in the fields of biologics and antibody drug conjugates,” Jubilant Pharmova said in a press release.

Pierre Fabre Laboratories may also invest 20% equity, or Euro 1.1 million, over a period of 2 years in the new company for a maximum period of 5 years. “During this time, they may continue to provide support to the new company to transition the R&D Centre into a fully independent contract research organisation, with PFG having no access to any proprietary information or IP related to the R&D Centre,” the press release mentioned.

The pharmaceutical company informed the bourses that Pierre Fabre is also expected to hire services from JBL, aggregating Euro 7 million for the first four years.

Jubilant Pharmova shares were trading 5.32% higher at ₹899.35 apiece on the NSE at 2:15 pm.