SeQuent Scientific (SeQuent) and Shasun Pharmaceuticals (Shasun) have signed a Letter of Intent (LOI) to form a joint venture company (JVC) to develop, manufacture and sell veterinary products inclusive of both API (Active Pharmaceutical Ingredients) and formulations in the global market. Together, SeQuent and Shasun aim to quickly and effectively offer a range of veterinary products globally through the JVC.

The joint venture will benefit from SeQuent’s strong expertise in the development and commercialisation of animal health care products as well as SeQuent’s strong sales network. SeQuent’s capabilities are complementary to Shasun’s global expertise in the research, development and manufacture of pharmaceutical ingredients. This joint venture brings both the companies one step closer to providing highest quality veterinary products and supports their strategy to enter key, fast- growing markets.

In terms of the arrangement proposed in the LOI, SeQuent & Shasun will set up a JVC, into which contributions will be made by both companies by way of transfer of identified assets, contracts and licenses. SeQuent will own 73 per cent of the JVC and Shasun will own the remaining 27 per cent ownership in the JVC. The creation of the JVC is subject to the requisite corporate and statutory approvals, as may be applicable and is expected to operate from Q1 2014.

On successful completion of this arrangement, the JVC will emerge as India’s leading provider of animal health solutions.

Commenting on this milestone, Dr Gautam Kumar Das, Jt. 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.”

S Hariharan, CFO, Shasun stated, “We share SeQuent's passion for developing world class animal health care products, and are confident that together we are well positioned to cater to the needs of the global market in the growing animal health care sector.”