Shasun Chemicals & Drugs Ltd has completed its acquisition of the pharmaceutical custom synthesis business of the Rhodia Group. The letter of intent for the acquisition was announced on January 06, 2006 and the acquisition agreement was signed on March 31, 2006. The company and Rhodia have confirmed that requirements of due diligence and documentation have been completed. For Shasun Group, it is the first ever acquisition which has been done through its wholly owned subsidiary company Shasun Pharma Solutions Ltd. UK, according to the company release.
The transaction includes all of Rhodia's development and custom manufacturing services catering to innovator and emerging pharmaceutical clients in US, Europe and Asia. The proposed transaction includes UK manufacturing sites at Dudley in Northumberland, England and Annan in Scotland. The capacity of both the plants put together is 525 Cu.M. Both the manufacturing plants are US FDA inspected and approved for many products. The main focus of business is Contract Manufacturing Technologies like Hydrolytic Kinetic Resolution (HKR), Aromatic Bond Formation (ABF) and Radical Trifluoromethylation, with patents are part of this transaction. All products and building blocks related to these technologies, which include associations with scientists at Harvard and MIT are also part of the transaction. The transaction excludes transfer of debt or any other liabilities, including any pension liabilities, for events prior to the completion date.
During the due diligence process, existing customers of the business confirmed their intention to maintain their relationships under the new ownership. This acquisition includes retaining the current management team of the acquired business and the existing employees (Total strength being 349). Business includes a strong pipeline of pre-launch products, which are at an advanced Phase III stage trials, with a potential of significant future growth. During 2005, the acquired business generated revenues of EUR 60 Mio, stated release.
Announcing the transaction, Govindarajan of Shasun Chemicals & Drugs Ltd, said: "The successful execution of this acquisition is an important milestone for Shasun to realize its strategy of developing a global presence in APIs, custom synthesis and contract manufacturing. Combined with our existing capabilities in India and the acquired business in the UK, Shasun is uniquely positioned among Indian Companies in its impeccable IPR record, cost competitiveness and global presence, to serve the pharmaceutical industry throughout the drug life-cycle. We are confident that this capability set will not only enable us to retain and grow business with current customers of the two businesses, but also attract a wider set of Innovator and Emerging Pharma Companies.
Govindarajan further added that this acquisition is a strategic fit since both Shasun as well as the acquired Company have a non-competing business model. This positions the combined entity as a leading CRAMS player in the Global arena.