Jubilant To Acquire Draxis Health

Jubilant Organosys Ltd. and Draxis Health, Inc. have entered into an agreement whereby Jubilant will acquire all outstanding common shares of Draxis for approximately $255 million.
   
Mr. Shyam S. Bhartia, chairman and managing director of Jubilant, and Mr. Hari S. Bhartia, co-chairman and managing director of Jubilant, commented, “Draxis represents a unique opportunity in the North American market, offering Jubilant entry into the attractive, regulated, high growth and high margin radiopharmaceutical business. It also enables Jubilant to consolidate its position in the sterile and non-sterile contract manufacturing business. With this acquisition Jubilant will become one of the leading providers of contract manufacturing of small volume parenterals to large pharmaceuticals and biotech companies in North America. Jubilant is committed to grow Draxis by supporting management and employees through new product launches, entry into new markets and expansion of customer base.”
   
Under the agreement, Draxis, in certain circumstances, can terminate the arrangement and accept an unsolicited superior proposal, subject to fulfilling certain conditions. Draxis has agreed to pay Jubilant a break fee of $10.5 million in such circumstances and certain other limited circumstances if the transaction is not completed. The transaction, subject to customary closing conditions, is expected to close in 2Q08.