The Hindu Business Line : Jupiter Bio set for 10-year purchase pact with Ranbaxy

Hyderabad April 7 Jupiter Bioscience Ltd, the Hyderabad-based peptide technology focused company, is all set to ink a 10-year product purchase agreement with pharma major Ranbaxy Laboratories.

The company has, in-principle, agreed to offer a 14.9 per cent stake to Ranbaxy, and the product purchase agreement hopes to leverage the latter's vast global market reach to put the company's upcoming peptide products on a fast-track.

Giving details on the proposed deal minus the deal value, the Chairman and Managing Director of Jupiter Bioscience, Mr Venkat R. Kalavakolanu, said the funds raised through the equity stake divestment would be to part-finance the process to take the peptide products to the regulated markets quickly.

The agreement with Ranbaxy would be a semi-exclusive one for generic products and exclusive in the case of products whose patent is about to expire. "We hope to encash on the potential of peptide formulations through Ranbaxy's reach, while for the latter it would be creating a significant presence in the field," Mr Venkat told Business Line today.

Stake acquisition

Interestingly, the stake acquisition in Jupiter Bioscience will be the third significant investment from Ranbaxy in Hyderabad-based companies. Zenotech Laboratories Ltd and Krebs Bio are the other two in which it has picked up stake in the recent past.

Jupiter Bioscience is perhaps one of the very few peptide companies in Asia with technology to manufacture peptides from the basic stage and among the ten peptide companies in the world, he said.

Simultaneously, the company is also close to firming up its plans to raise about Rs 100 crore through a QIB issue, and raising funds from financial institutions for which it has got the approval from the board and shareholders, he said.

Its subsidiary — Jupiter Bioscience (US) — is in the process of setting up a good manufacturing practices facility in Maryland for the manufacture of custom peptides, clinical peptides and peptide-based generic active pharmaceutical ingredients.

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