Panacea Biotec to acquire stake in US firm

Panacea Biotec to acquire stake in US firm
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First Published: Wed, Oct 01 2008. 01 54 PM IST
Updated: Wed, Oct 01 2008. 01 54 PM IST
Mumbai: “Indian vaccines maker Panacea Biotec Ltd will invest $13.1 million in US based PharmAthene Inc for a near 20% stake,” the firms said on Wednesday.
Panacea, through its unit Kelisia Holdings Ltd, will acquire about 3.73 million shares at $3.50 each and 12-month warrants to buy up to 2.75 million shares at an exercise price of $5.10 a share, the companies said in two separate statements.
“Panacea Biotec is committed to identifying partners for US distribution of our products,” Panacea’s joint managing director Rajesh Jain said in the press note.
“The deal is expected to close on or before 20 October,” the note said.
PharmAthene makes biodefense products that includes vaccines for anthrax and plague.
Under a related deal, PharmAthene has the first right of negotiation to sell some of Panacea’s bio-defence vaccines in the US.
The firms added they could also look at an alliance, where Panacea develops and makes the US firm’s products.
“Panacea will not buy additional shares in the US firm for the next three years,” they added. The Indian firm’s shares, which rode up on the news, have eased to trade 0.9% higher at Rs242.60 in a firm Mumbai market.
PharmAthene shares closed Tuesday almost flat at $1.85 on the American Stock Exchange.
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First Published: Wed, Oct 01 2008. 01 54 PM IST