Reliance Life Sciences to acquire UK’s GeneMedix
Mukesh Ambani-promoted Reliance Life Sciences on Thursday entered into a deal to acquire a majority stake in UK-based biopharmaceutical company GeneMedix Plc and also invest £32.1 million over the next five years.
According to an announcement by GeneMedix at the London Stock Exchange, RLS would make the investment over the next five years in order to take the company’s bio-similars for launch in the EU and US.
The proposal would see RLS make the investment in two tranches, of approximately £14.6 million and £17.5 million, to reflect the anticipated funding requirements of the business, it said.
Initially, RLS will acquire 74 per cent in GeneMedix through the investment of £14.6 million, which will immediately allow the company to restructure its balance sheet by removing long-term debt instruments, it added.
The initial investment would be through a share subscription while the second through the issue of five year warrant of additional ordinary shares. GeneMedix plans to delist post acquisition by RLS.
Commenting on the transaction, Mr Julian Attfield, Chief Executive of GeneMedix said the investment by RLS, subject to the approval of its shareholders, would bring to an end the uncertainties surrounding the funding of its programmes and the company’s f inancial position.
"Not only will the significant investment allow GeneMedix to continue to develop its existing portfolio of products at an accelerated pace but will also allow us to bring new biopharmaceutical products under development," he added. – PTI
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