Jubilant Pharmova To Transfer API Business To Jubilant Biosys Via Slump Sale

Jubilant Pharmova Ltd. on Thursday said it has signed a share purchase agreement to transfer its active pharmaceutical ingredients business to wholly-owned subsidiary Jubilant Biosys Ltd. on a slump sale basis. The business being transferred has an estimated net worth of ₹6.66 billion, the company said in an exchange filing.

As Jubilant Biosys is a subsidiary of Jubilant Pharmova, the consideration for the transfer will be paid through a share issuance, as agreed in the deal. The transaction is expected to be completed by September.

Jubilant Biosys is currently engaged in drug discovery, contract development and manufacturing services, and commercial manufacturing. Bringing the API business under the same umbrella will enhance operational efficiency and improve asset utilisation in the bulk drugs division, Jubilant Pharmova said.

The company plans to double its bulk drugs business by 2030 and is targeting an EBITDA margin of over 15%. To achieve this, it aims to launch new products and boost revenue contribution from custom manufacturing for large pharmaceutical clients.