Singapore-based Jubilant Pharma Limited has decided to sell its entire stake in Sofie Biosciences Inc, USA for aggregate proceeds of about $139.43 million (including preferred returns), according to an exchange filing.
Jubilant Pharmova’s wholly owned subsidiary had in November 2020 invested $25 million in Sofie Biosciences and currently holds 25.8% stake, the firm said in a filing on January 28.
Sofie, which is engaged in developing and delivering molecular diagnostics and therapeutics (theranostics), has now entered into a definitive merger agreement with certain private equity funds managed by a US private equity firm Trilantic Capital Partners, North America. Sofiealso has a radiopharmaceutical production and distribution network, mature contract manufacturing services and high value theranostic intellectual property.
Of the proceeds of Jubilant Pharma Limited amounting to $139.43 million following the stake sale, $113.63 million is expected to be received upon completion of the merger while receipt of balance sum of $25.8 million is contingent upon achievement of certain future milestones.
Jubilant Pharma plans to use these proceeds to reduce leverage and for capex and other corporate purposes.
Jubilant Pharmova shares had ended 0.18% lower at ₹568.50 on BSE on January 25, the last trading day of the week. Even as the stock has been in the negative territory for the past few days, it has given a return of nearly 68% in the past year as against benchmark Sensex which has risen about 19% during the period.
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