New Delhi , Oct. 5

JUBILANT Organosys Ltd has picked up 100 per cent stake in a US-based clinical research organisation (CRO), Target Research Associates Inc, in a $33.5-million (Rs 145 cr) cash deal.

This is the first acquisition of a US CRO by an Indian company, making it the largest Indian CRO with operations in India and the US. It will enable Jubilant to expand its CRO services globally.

According to an official statement, Target Research is a debt-free company with healthy EBITDA (earnings before interest, taxes, depreciation, and amortisation) margins. It offers services in all aspects of clinical research including study protocol development, project management, data management, bio-statistical analysis, regulatory affairs, quality assurance, and drug safety.

It has strong experience in the oncology, pulmonary, allergy, dermatology, cardiovascular, gastrointestinal, transplant, and anti-infective therapeutic areas.

Clinical trials: Jubilant currently has an Indian subsidiary, Jubilant Clinsys Ltd, which conducts bio-availability studies through its 54-bed facility and bio-analytical laboratory. The company also has the skills to provide phase I-IV clinical trial services.

According to Mr Shyam S. Bhartia, Chairman and Managing Director, and Mr Hari S. Bhartia, Co-Chairman and Managing Director, Jubilant, "Target fits very well with Jubilant's strategy to expand its strong relationships with many of the leading pharmaceutical companies in the world. The acquisition of Target further enables Jubilant to increase its presence in the US market, which has the highest concentration of pharmaceutical and biotech companies."

Mr Lloyd Baroody, Chief Executive Officer and Co-Founder of Target, said, "India, with its large cadre of highly educated professionals in the healthcare and medical fields and a competitive cost environment, has become a very attractive country for conducting clinical research.

"Its large, untapped patient population will allow us to accelerate our client's clinical studies and deliver quality and cost effective services to our clients at a time when they are seeking much greater value from their service providers. We are very excited about our future prospects with Jubilant as our parent company."

The share price of Jubilant closed at Rs 1,026.60, a 2.12-per cent gain on the National Stock Exchange, while it fell by 0.44 per cent on the Bombay Stock Exchange, closing at Rs 1,002.35.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page