Mumbai, Dec. 21: Mukesh Ambani-promoted Reliance Life Sciences today entered into a £32.1-million deal to acquire a majority stake in UK-based biopharmaceutical company GeneMedix Plc.

GeneMedix has informed the London Stock Exchange about the deal.

Reliance Life would make the investment over the next five years in GeneMedix in two tranches of around £14.6 million and £17.5 million. Reliance Life will initially acquire 74 per cent of GeneMedix by investing £14.6 million. This will allow the UK-based company to restructure its balancesheet by removing long-term debt instruments.

According to a statement issued by GeneMedix, the company will benefit from improved infrastructure and products available as a result of Reliance Life’s involvement.

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 from the London Stock Exchange after Reliance Life acquires it.

Julian Attfield, chief executive of GeneMedix, said the investment by Reliance Life, subject to the approval of its shareholders, would bring to an end the uncertainties surrounding the funding of its programmes and the company’s financial position.

“Not only will the 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,” Attfield added.

GeneMedix was set up to develop a range of biosimilars (medicines derived from biotechnology) and it has three products under development.