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Chennai-based Shasun Pharmaceuticals Ltd has signed a Letter of Intent (LOI) with Bangalore-based pharmaceutical firm SeQuent Scientific Ltd to develop, manufacture and sell veterinary products, including active pharmaceutical ingredients (API) and formulations in the global market.
As per the arrangement in the LOI, the companies together would set up a joint venture company, of which 73 per cent would be owned by SeQuent and 27 per cent by Shasun. Contributions will be made by both companies by way of transfer of identified assets, contracts and licenses.
This would also be an exposure for Shasun into the veterinary medicine segment where it has not been operating so far, according to company officials.
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“We have signed an LOI and the rest of the procedures will follow. We are expecting the JV company to be ready for operation by March 2014,” said S Hariharan, chief financial officer, Shasun Pharmaceuticals Ltd.
While the company does not have exposure in the segment, it would bring in contact which could be used for the growth of the joint venture, he added. The JV company is expected to operate from Q1, 2014, subject to the requisite corporate and statutory approvals, says the company annoncement.
The joint venture firm would also have a manufacturing facility in Vizag, where Shasun is presently developing its manufacturing facilities. Plans are on to sell the products to both the domestic and export market, he said.
SeQuent Scientific presently has a presence in various pharmaceutical segments, including the APIs, animal health, analytical services, CRAMS and speciality chemicals. The company claims as the world’s largest producer of Anthelmintics (a drug used to treat infections caused by parasitic worms) and a strong player in the veterinary API business.
Shasun Pharma presently manufactures active pharmaceutical ingredients and formulations and offers contract research and manufacturing service for APIs in India and the UK.
