Alembic Pharma to acquire 45% stake in Canadian venture for pharma market expansion

Alembic Pharmaceuticals Limited has executed a Shareholders’ Agreement to invest in a newly incorporated Canadian Corporation as part of its plans to expand its pharmaceutical presence in the Canadian market.

The company will hold a 45% equity stake in the Canadian entity following the investment. The agreement has been entered into along with Difgen Holdings LLC and Mr Sukhad Juneja for investing in shares of 17989377 Canada Inc., the Canadian Corporation.

The investment is aimed at establishing a platform for the development, commercialisation, distribution and marketing of pharmaceutical products focused on the Canadian market.

Following the investment, the Canadian Corporation will become an associate company of Alembic Pharmaceuticals.

As per the agreement, Alembic Pharmaceuticals will hold a 45% stake in the Canadian Corporation, while Difgen Holdings LLC will also hold a 45% stake. The remaining 10% stake will be held by others.

The Board of Directors of the Canadian Corporation will comprise nominee directors of the shareholders along with an independent director. The agreement also includes customary shareholder rights, including participation in key decision-making matters.

Alembic Pharmaceuticals said the transaction does not fall under related party transactions and there is no potential conflict of interest arising from the agreement.

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Shares of Alembic Pharmaceuticals Limited closed at ₹742.75 on the NSE, up ₹5.20 or 0.71%.