Active Pharmaceutical Ingredients Joint Venture of Sequent Scientific and Shasun Pharmaceuticals
A new merger in the market of animals health care has been formed. SeQuent Scientific and Shasun Pharmaceuticals join to develope and manufacture pharmaceutical ingredients. Both companies hope to gain synergies and technical arbitrage.
Bengaluru – SeQuent Scientific and Shasun Pharmaceuticals today announced that they have signed Letter of Intent to form a Joint Venture Company to develop, manufacture and sell veterinary products inclusive of both 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 Joint Venture.
Animal Health Care Products
The undertaking will benefit from SeQuent's strong expertise in the development and commercialization of animal health care products as well as its strong sales network. The company’s capabilities are complementary to Shaun's global expertise in the research, development and manufacture of pharmaceutical ingredients. This joint venture brings the companies one step closer to providing highest quality of veterinary products and supports their strategy to enter key, fast- growing markets.
In terms of the arrangement proposed in the Letter of Intent, SeQuent and Shasun will set up a Joint Venture, into which contributions will be made by both companies by way of transfer of identified assets, contracts and licenses. SeQuent will own 73% of the Joint Venture and Shasun will own the remaining 27% ownership in the company. The creation of the Joint Venture is subject to the requisite corporate and statutory approvals, as may be applicable and is expected to operate in the first quarter of 2014.
Synergies and Technical Arbitrage
On successful completion of this arrangement, the Joint Venture will emerge as India’s leading provider of animal health solutions.
Commenting on this milestone, Joint Managing Director, SeQuent, Dr Gautam Kumar Das said, “The combination with Shasun will deliver synergies and technical arbitrage enabling the Joint Venture to emerge as a leading global provider of animal health solutions.”
Chief Financial Officer, Shasun, Shariharan 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.”