Jubliant to list US firm

Jubilant Organosys plans to take its recent acquisition in the US public through an initial public offering (IPO).

The company had yesterday announced that it had signed a pact to pick up a controlling 75 per cent stake in the US-based unlisted generic pharmaceutical company in an all-cash $8.25 million deal.

Jubilant, however, refused to divulge the name of the company, and said the non-disclosure agreement signed with the promoters of the target company prevents them from doing so.

Details of the company to be acquired such as its exact location in the US or the size of its operations and turnover too were not made available at this stage.

Jubilant executives said the new acquisition could go the stock market to raise more capital to fund its expansion. Company officials said no decision had been taken on which market will tapped for additional funds or when the IPO would be announced.

Jubilant officials said a further sum of $12 million will be invested in the American company's growth capital over two years. Jubilant' s board also approved a proposal to rise funds up to $100 million by way of FCCB/ADR/GDR to fund acquisitions and capital expenditure.

Besides having a US FDA approved manufacturing facility in the US, the company to be acquired has five approved abbreviated new drug applications (ANDAs) and another three ANDAs which are waiting for approval. The company also has a pipeline of 14 products.

These, according to a release from the company said will be complemented by 10 ANDAs that Jubilant will develop for the target company.