BackTata group to sell biotech unit Advinus Therapeutics to Eurofins Scientific
Deal with Eurofins Scientific for Advinus Therapeutics is expected to close in the next several weeks, says Tata Sons
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Mumbai: The Tata group on Thursday said it had agreed to sell its pharmaceuticals and biotech research unit Advinus Therapeutics to Eurofins Scientific, a Luxembourg-based group of laboratories.
Group holding company Tata Sons Ltd holds a 67.31% stake in Advinus, according to its 2015-16 annual report. Tata Industries and Rallis India also hold stakes in the research company, apart from individual shareholders.
“The transaction is expected to close in the next several weeks, subject to the fulfilment of customary closing conditions," said a statement from Tata Sons. It didn’t disclose the size of the deal.
“Advinus’ expertise complements Eurofins contract research, development and manufacturing (CDMO) capabilities," the firm added in the statement.
Advinus was started by the Tata group in 2005 as a research outsourcing company with Rashmi Barbhaiya, the former research and development head of Ranbaxy Laboratories Ltd.
For fiscal year 2015-16, the company reported a loss of Rs17.30 crore on a turnover of Rs160 crore.
On 2 June, Mint had reported that the Tata group was looking to exit non-core businesses, especially those that are not contributing to profits.
“Advinus has substantial capabilities that are in synergy with Eurofins and provide us with additional opportunities to grow the company," Rajiv Malik, chief executive officer of Advinus, said in an emailed statement.
Advinus has submitted over 50 end-to-end investigational new drug applications to global regulators such as the US Food and Drug Administration, the European Medicines Agency, the Medicines and Healthcare Products Regulatory Agency in the UK and Health Canada, the statement added.
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