Jubilant Pharmova Unit To Buy Majority Stake In Pierre Fabre’s R&D Centre For 4.4 Million Euros

Jubilant Biosys Innovative Research Services Pte Limited, Singapore, a subsidiary of Jubilant Biosys Limited, a wholly owned subsidiary of Jubilant Pharmova Limited, has issued a 'put option offer' to Pierre Fabre Laboratories. This offer proposes the acquisition of an 80% equity stake, amounting to approximately 4.4 million euros over two years, in a new company to be established in France, as per an exchange filing on Friday.

This new entity will acquire Pierre Fabre’s R&D Centre in Saint Julien, France.

The potential collaboration is contingent upon consultations with the Pierre Fabre Works Council, approval of the offer by Pierre Fabre, and the finalisation of definitive agreements along with customary closing conditions.

Upon closing, the new company will utilise the R&D Centre to collaborate with major pharmaceutical and biotech clients in Europe and the USA. This acquisition aims to bolster Jubilant Biosys’ drug discovery capabilities, particularly in biologics and antibody-drug conjugates.

Pierre Fabre Laboratories, one of France's largest innovative pharmaceutical companies with revenues exceeding $2 billion, may retain a 20% equity stake in the new company, amounting to approximately 1.1 million euros over two years. This stake may be held for up to five years, during which Pierre Fabre will support the transition of the R&D Centre into an independent contract research organisation without access to any proprietary information or intellectual property related to the centre.

Additionally, Pierre Fabre Laboratories may contract services from Jubilant Biosys worth up to 7 million euros over the first four years.

Shares of Jubilant Pharmova Ltd., closed 0.84% lower at Rs 854.70 per share, compared to a 1.68% advance in the BSE Sensex.