Jubilant Pharma to sell 25.8% stake in Sofie Biosciences for $139.4m
Jubilant Pharma Limited, Singapore, a wholly owned subsidiary of Jubilant Pharmova, has announced a significant financial move by selling its entire 25.8% stake in Sofie Biosciences Inc., USA, for a total of approximately USD 139.43 million, including preferred returns.
Jubilant Pharma initially invested USD 25 million in Sofie Biosciences in November 2020. Sofie, a company engaged in the development and delivery of molecular diagnostics and therapeutics, known as theranostics, has a robust radiopharmaceutical production and distribution network, along with valuable theranostic intellectual property.
Sofie Biosciences has entered a definitive merger agreement with private equity funds managed by Trilantic Capital Partners, North America, a US private equity firm. The merger is expected to be finalized by June 30, 2024, contingent on customary conditions and regulatory approvals. Jubilant Pharma plans to sell its stake for aggregate proceeds of about USD 139.43 Million, with USD 113.63 Million expected at the merger’s completion and the balance contingent upon future milestones.
Major Divestment: Jubilant Pharma to Exit Sofie Biosciences with Hefty Profit
Jubilant Pharma intends to utilize the proceeds from this sale to reduce leverage and for capital expenditures and other corporate purposes. This strategic decision is indicative of Jubilant Pharma’s agile approach to investment and capital management within the healthcare sector.
Sofie Biosciences is dedicated to enhancing patient outcomes through the development and delivery of molecular diagnostics and therapeutics. The company aims to revolutionize clinical diagnostics and therapeutics, focusing on increasing the adoption and application diversity of theranostics.
Jubilant Pharma’s decision to divest its stake in Sofie Biosciences is a strategic move that capitalizes on the growing potential of the theranostics market. This sale not only provides substantial financial gains for Jubilant Pharma but also signifies the evolving nature of investments in the healthcare sector, particularly in innovative areas like molecular diagnostics and therapeutics.