Indian firm to buy Draxis for $255 million

Jubilant Organosys of Noida, India, has signed an agreement to acquire radiopharmaceutical developer Draxis Health of Montreal for $255 million (U.S.).

In a deal announced on April 4, a wholly owned subsidiary of Jubilant Organosys would purchase Draxis' common shares for $6 each in cash. The arrangement includes a clause in which Draxis, under certain circumstances, can halt the transaction and accept an unsolicited better offer. Draxis would pay Jubilant $10.5 million if the transaction is not completed.

Draxis' board of directors today approved the transaction and has recommended that shareholders also vote in favor of the agreement. The acquisition is expected to close in the second quarter of 2008 and is subject to customary closing conditions.

Jubilant Organosys specializes in custom research, drug discovery, manufacturing, and development services for the pharmaceutical industry. The company has manufacturing facilities in India; Salisbury, MD; and Spokane, WA.

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