Advanced Enzyme picks up 70% stake in JC Biotech

HYDERABAD: Specialty Biotech Company Advanced Enzyme Technologies on Friday has picked up 70% stake in API maker JC Biotech for Rs 50 crore, a senior company official informed.

Speaking to the reporters, C L. Rathi, Managing Director, Advanced Enzymes, said, “We expect this deal to immediately strengthen our market leadership in API Serratiopeptidase, giving us significant competitive advantage as well as flexibility in production. JC Biotech has the ability to handle solvent based fermentation & recovery, which is highly complementary to our current production process.”

The acquisition is expected to close latest by end of December 2016. Advanced Enzymes will finance the acquisition largely through internal accruals.

JC Biotech currently commands a 50%+ share in the Indian market, thereby taking Advanced Enzymes’ combined market share to 80%+ post acquisition. As of 31st March 2016, JC Biotech’s revenues stood at Rs 39 crore, with a Profit After Tax (PAT) of Rs 2.5 crore.

Headquartered in Hyderabad, JC Biotech is the manufacturer of API Serratiopeptidase, an anti-inflammatory enzyme, and has a R&D pipeline of biopharma molecules.