Ranbaxy to up stake in Zenotech Laboratories

Hyderabad based biotechnology firm Zenotech Laboratories informed BSE that its promoters and Ranabaxy laboratories which presently has a 7% stake in the company have agreed upon increasing the equity stake in company to 45%.

Ranbaxy will buy 78,78,906 shares of Zenotech Laboratories held by its promoters. Zenotech will also allot 54,89,536 shares to Ranbaxy on a preferential basis.

A few days back Ranbaxy had acquired Zenotech Laboratories to gain access to the $65 bn market for biotechnology treatments. Zenotech has two biotechnology based cancer treatments in India with another eight being developed.

The acquisition gives chief executive officer of Ranbaxy Malvinder Singh control over research and production of drugs based on generic biotechnology, or living cell-based products, that are harder to make than chemical medicines.

Companies including General Motors Corp are pushing the US to allow copies of biological medicines as a way to reduce healthcare costs.