Matrix takes 55% stake in Concord Bio

Matrix Laboratories has signed an agreement with the promoters of Ahmedabad-based Concord Biotech to acquire 55% controlling stake in the company.

According to a release issued by Matrix Laboratories to the BSE today, the company will acquire the stake through a combination of purchasing existing equity shares from the promoters and other shareholders, and also subscribing to new equity shares to be issued by Concord Biotech on preferential basis.

"Concord Biotech has fermentation and bio-catalytic technology capabilities, and USFDA-approved API manufacturing facilities," the release added.

Sudhir Vaid, the main promoter and MD of Concord Biotech, and his associates would continue to hold 29% stake in the company.

"Our investment in Concord Biotech is in line with our strategic intent to acquire fermentation technology and manufacturing capabilities. This is a key step in the evolution of Matrix and has come in at a time when the major fermentation-based products are going off-patent in the international markets. This investment will add statins, enzymes and immunosuppressants to our product portfolio," N. Prasad, executive chairman of Matrix, said.