New Delhi: Shares of Jubilant Life Sciences jumped as much as 4 per cent to hit intraday high of Rs. 763.70 after its subsidiary Jubilant Pharma said that it will acquire the radio-pharmacy business of US-based Triad Isotopes for an undisclosed sum.
“Jubilant Pharma Ltd (JPL)… through one of its wholly owned subsidiaries, has signed an asset purchase agreement with Triad Isotopes Inc and its parent, Isotope Holdings Inc (Triad) to acquire substantially all of the assets which comprise the radio-pharmacy business of Triad,” Jubilant Life Sciences said in a BSE filing.
It further said: “The acquisition will be funded through JPL’s internal accruals and is likely to be earnings accretive in the first full year of operations. Triad recorded revenues in excess of $225 million in calendar year 2016 with positive EBITDA.”
Jubilant Life Sciences said Triad operates the second largest radio-pharmacy network in the US with more than 50 pharmacies, distributing nuclear medicine products to the largest National GPOs, regional health systems, stand-alone imaging centres, cardiologists and hospitals.
“The acquisition is a strategic fit to Jubilant’s niche nuclear medicine business and will provide Jubilant with direct access to hospital networks with ability to deliver more than 3 million patient doses annually through approximately 1,700 customers,” Jubilant Life Sciences said.
The acquisition will facilitate Jubilant forward integrate in the radio-pharmaceutical business, thereby helping it better directly serve healthcare providers and their patients with high quality radio-pharmaceutical products,” it added.
The company said the completion of the transaction is subject to customary closing conditions, including contract, regulatory and other approvals.
Shares of Jubilant Life Sciences were trading 3 per cent higher at Rs. 757.