India-based custom research and manuafcturing services provider SeQuent Scientific has acquired a stake worth almost 16% in India-based Shasun Phamaceuticals for about Rs 1.17bn ($19.15m), in a deal that will take the form of a preferential allocation of shares and convertible warrants.
SeQuent and Shasun have an existing joint venture for veterinary products, initiated in July 2013, in which SeQuent is the majority partner with a 73% stake. The joint venture company, known as Alvira Animal Health, will develop, manufacture and sell veterinary products that will include active pharmaceutical ingredients and formulations in the global market.
Earlier this month, private equity firm Ascent Capital picked up a minority stake in Alivira Animal Health.
Gautam Kumar Das, managing director of SeQuent said: “The combination with Shasun will deliver synergies and technical arbitrage enabling the joint venture company to emerge as a leading global provider of animal health solutions.”
In August 2013, Shasun enlisted Kevin Cook as president to accelerate company growth and increase sales. The appointment of Cook was preceded by the formation of a partnership between Shasun and Debiopharm Group a Switzerland-based global biopharmaceutical group, which saw the two firms enter into a licensing agreement for the manufacturing and commercialisation of Huperzine-A, a drug to inhibit the effects of Alzheimer’s disease.
Shares of Shasun last traded at Rs 133.10 ($2.20) a unit, up 7.6% on the BSE in a strong Mumbai market. The markets were closed for trading on Thursday due to elections in Mumbai. SeQuent’s shares were up 2.76% on Friday to Rs 262.10 ($4.33).