Orchid Pharma transfers IKKT Undertaking to JV with US subsidiary Bionpharma

The consideration for the transaction is estimated to be up to Rs170cr ina combination of cash and equity stake in the Joint Venture Company.

May 06, 2021 03:05 IST India Infoline News Service

Orchid Pharma Limited has informed that the Company has signed a Binding Term Sheet on 5th May, 2021 for transfer of its NPNC Formulations Division (IKKT Undertaking) at Irungattukottai, Chennai to a Joint Venture with a subsidiary of Bionpharma, a US based generic pharmaceutical company with a commercial portfolio and a pipeline of generic products in the United States.

As a part of this strategic collaboration, the Company will transfer its IKKT Undertaking to a “New Company” to be incorporated as a 74:26 Joint Venture with this Bionpharma entity.

The consideration for the transaction is estimated to be up to Rs170cr ina combination of cash and equity stake in the Joint Venture Company.

This strategic collaboration, will help Orchid expand its Formulations base in Regulated Markets with a strong partner with a presence in US, which is especially important in light of current pandemic.

The consummation of the transaction is subject to execution of definitive agreements and usual conditions precedent including the approval of shareholders of Orchid and other approvals. 

Orchid Pharma ended at Rs1,593.55 per piece up by Rs4.25 or 0.27% from its previous closing of Rs1,589.30 on the BSE.

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