The Hindu : Business : Matrix to take controlling stake in Concord Biotech

Online edition of India's National Newspaper
Wednesday, Dec 07, 2005

Business

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Matrix to take controlling stake in Concord Biotech

Special Correspondent

To get a foothold in the growing statins market

HYDERABAD: In a major move, Matrix Laboratories, the active pharmaceutical ingredients (API) manufacturing company, has announced its decision to acquire controlling stake in Concord Biotech Limited, an Ahmedabad-based biotechnology company with U.S. FDA approved API facilities.

Matrix has signed a term sheet to this effect with the promoters of Concord Biotech here. According to the term sheet, Matrix will acquire 55 per cent stake in Concord Biotech through a combination of purchase of existing equity shares from the promoters and other shareholders besides subscribing to the new equity shares to be issued by Concord Biotech on a preferential basis. Sudhir Vaid, the main promoter and Managing Director of Concord Biotech, and his associates will continue to hold 29 per cent stake in the company while other existing shareholders will hold 16 per cent.

The move will help Matrix get a strategic foothold in the growing market of statins and immunosuppressants and it brings in USFDA approved commercial scale fermentation manufacturing capacities to the company.

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