Australia-based Rapid Nutrition, a natural healthcare company, has entered into a joint venture agreement with in city-based Cheminnova Remedies.
According to the JV understanding, Rapid Nutrition will pick up 74% of Cheminnova stakes in the next 24 months, through a special purpose vehicle of the Australian company in India, said Vasudeva Rao, managing director, Cheminnova.
"The current holding of promoters is 100% and Rapid Nutrition will hold 74% equity in 18 to 24 months time and we will end up with 26% and it is a committed JV," Rao told media persons in a press conference today.
According to market experts, this is a first of kind transaction taking place in the pharma industry in the country, as there is no amount involved in the transaction.
Cheminnova has three production facilities spread across Andhra Pradesh and Himachal Pradesh and manufactures a variety of drug dosages, ranging from solids, liquids and packaged powders.
Rapid Nutrition is developing niche products and is expanding into a comprehensive healthcare company and our combined resources should result into the full vertical integration of research, production, marketing and sales of a complete range of innovative products, Rao said.
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Simon St Ledger Managing Director Rapid Nutrition said the joint venture will enable them to manufacture its own high quality finished formulations, as well as derive an income from continued contract manufacturing.
"The venture, which involves business generating assets, valued at over $20 million, gives us both equity and captive production capabilities in exchange for part of our business and access to our products," Ledger said.
Once acquired, the entity will have a manufacturing capacity of 3.5 million tablets, one million capsules and one million bottles of liquid orals in glass and PET bottles per 12 hour shift, he said adding the transaction is expected to be finalised sometime in March.