Eiko LifeSciences signs MoU with Vivacious Pharmatex

Eiko LifeSciences (ELL) has entered an MOU with Vivacious Pharmatex (VPPL). The salient features of the MOU are as under:

• ELL to make strategic investment in VPPL by way of acquiring 5 per cent equity stake in VPPL
• Besides the amount of strategic investment, the expected additional outlay on account of capital expenditure, research and development will be approximately Rs 3.00 crores
• ELL to assist VPPL in identifying, developing, and promoting new products and marketing thereof in the interest of both the companies.
• Both VPPL and ELL to use their manufacturing facilities/ expanded capacities to manufacture the products identified and developed by ELL.
• ELL to be the preferred source of supply for some the key raw materials to VPPL at “Arm’s Length” transaction.
• ELL has agreed to do necessary capital expenditure (CAPEX) required for the development and manufacturing of new products, and assist VPPL in some of the intermediate processes
• ELL to transfer technologies for newly developed products (cosmetic emollients) to VPPL. As a result, VPPL to do manufacturing for and on behalf of the ELL.
• All the products developed/co-developed and manufactured would be marketed by ELL.

Commenting on this development, Laxmikant Kabra, Chairman & Director, Eiko LifeSciences said, “This is just the beginning of our fruitful relationship, and this association would help our business run smoothly.”