Jubilant Innovation USA to receive up to $22.6 m over acquisition of drug development firm

The payments are on account of an acquisition by a large pharma company of one of their investee companies having assets in early stage clinical development

Jubilant Life Sciences’ US arm stands to receive up to $22.6 million following the acquisition of a drug development firm, in which it has an indirect investment, by a pharmaceutical company which was not named.

Jubilant Innovation USA will receive “an upfront payment of $4.6 million and contingent payments of up to $18 million based on the achievement of certain predetermined clinical and regulatory milestones from its 10 per cent interest as a limited partner in one of the venture funds specialised in seeding and investing in early stage drug discovery firms,” Jubilant Life Sciences said in a BSE filing.

These payments are on account of an acquisition by a large pharma company of one of their investee companies having assets in early stage clinical development, it added.

The deal is a testimony to the company’s investment in innovation through Jubilant Innovation model to create value for shareholders, Jubilant Life Sciences, Chairman, Shyam S Bhartia and Co-Chairman and Managing Director, Hari S Bhartia said in a joint statement.

Jubilant Innovation, together with Jubilant Biosys and Jubilant Chemsys are part of Jubilant Life Sciences’ (JLS) drug discovery solutions business.

JLS had decided to make strategic investments in venture funds investing in early stage discovery companies. In addition, JLS has decided to pursue proprietary drug discovery of small molecules with an intent to out-license or partner the same for upfront payments and phased milestone payments, the company said.

PTI