)
Chennai-based Shasun Pharmaceuticals Ltd has singed a Letter of Intent (LOI) wit 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% would be owned by SeQuent and 27% by Shasun. Contributions will be made by both the 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 in the segment, according to company officials.
'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 contacts which could be used for the growth of the Joint Venture, he added. The JV company is expeected 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 currently developing its manufacturing facilities. Plans are to sell the products to both the domestic and the exports market, he said.
In a statement, Gautam Kumar Das, joint managing director of SeQuent said, 'The combination with Shasun will deliver synergies and technical arbitrage enabling the JVC to emerge as a leading global provider of animal health solutions.' The JV firm is aiming to quickly offer a range of veterinary products globally.
SeQuent Scientific currently has 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 currently manufactures active pharmaceutical ingredients and formulations and offers contract research and manufacturing service for APIs in India and the UK.
