New Delhi: Jubilant Life Sciences today said its US arm stands to receive up to USD 22.6 million following the acquisition of a drug development firm, in which it has an indirect investment, by a pharmaceutical company which was not named.
Jubilant Innovation USA will receive "an upfront payment of USD 4.6 million and contingent payments of up to USD 18 million based on the achievement of certain predetermined clinical and regulatory milestones from its 10 percent interest as a limited partner in one of the venture funds specialised in seeding and investing in early stage drug discovery firms", Jubilant Life Sciences said in a BSE filing.
These payments are on account of an acquisition by a large pharma company of one of their investee companies having assets in early stage clinical development, it added.
This deal is a testimony to the company's investment in innovation through Jubilant Innovation model to create value for shareholders, Jubilant Life Sciences Chairman Shyam S Bhartia and Co-Chairman and Managing Director Hari S Bhartia said in a joint statement.
Jubilant Innovation, together with Jubilant Biosys and Jubilant Chemsys are part of Jubilant Life Sciences' (JLS) drug discovery solutions business.
JLS had decided to make strategic investments in venture funds investing in early stage discovery companies.
In addition, JLS has decided to pursue proprietary drug discovery of small molecules with an intent to out-license or partner the same for upfront payments and phased milestone payments, the company said.
Shares of Jubilant Life Sciences were trading 3.90 per cent down at Rs 395.55 apiece during afternoon session on the BSE.