MUMBAI: Jubilant Organosys Ltd and DRAXIS Health Inc. have entered into an agreement whereby a wholly-owned subsidiary of Jubilant will acquire all the outstanding common shares of DRAXIS for $6 per share in cash. The total value of this transaction is $255 million.
The purchase price represents 22.4 per cent premium over Thursday's closing price of DRAXIS's shares on NASDAQ and 41.2 per cent premium over the closing price of DRAXIS's common shares on NASDAQ on March 13, 2008, the last trading day on NASDAQ prior to the request by securities regulators to explain increased trading in DRAXIS's common stock on March 14, 2008.
The transaction was unanimously approved by the board of DRAXIS on April 4.
Commenting on the acquisition, Shyam S Bhartia, Chairman & Managing Director and Hari S Bhartia, Co-Chairman & Managing Director of Jubilant Organosys, said, "DRAXIS represents a unique opportunity in the North American market, offering Jubilant entry into the attractive, regulated, high growth and high margin radiopharmaceutical business. It also enables Jubilant to consolidate its position in the sterile and non-sterile contract manufacturing business. With this acquisition Jubilant will become one of the leading providers of contract manufacturing of small volume parenterals to large pharmaceuticals and biotech companies in North America. DRAXIS has an excellent regulatory track record, with its management and employees having a wealth of experience and expertise in radiopharmaceuticals and contract manufacturing. Jubilant is committed to grow DRAXIS by supporting management and employees through new product launches, entry into new markets and expansion of customer base."
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