Ranbaxy Laboratories is going for an open offer to increase its equity stake in generic biopharmaceuticals maker Zenotech Laboratories. The company will purchase shares at maximum offer price of Rs 160 per share, for an aggregate amount not exceeding Rs 214 crore. This would involve, purchase of shares from the existing promoters and preferential offer to Ranbaxy by Zenotech.According to an official release issued by Ranbaxy to the BSE today, post-offer, the existing promoter group of Zenotech will have a 25% stake in its expanded equity capital and Jayaram Chigurupati shall continue as the managing director.Malvinder Mohan Singh, CEO & MD, Ranbaxy, said: "The increasing importance of biologics in the global pharmaceutical industry and the opening up of the generic biologics in the regulated markets, makes it opportune for Ranbaxy to enhance its presence in this area. Specialty injectables, that include oncology products, constitute an attractive segment that underpins our strategic intent. Having worked with Zenotech for almost two years, we believe that this investment and partnership provides a strong platform for us to leverage these opportunities."Zenotech has received three Indian approvals for Oncology Biopharmaceuticals i.e. GCSF (Granulocyte Colony Stimulating Factor), GM-CSF (Granulocyte Macrophage Colony Stimulating Factor) and IL-2 (interleukin-2). For the latter two, Zenotech is the first to receive approvals in India, and has a pipeline of further seven Biopharmaceutical products in different stages, all developed in-house. It has state-of-the-art manufacturing facilities in Hyderabad, India, while its R&D facilities are in Hyderabad and New Jersey, USA.
