New Delhi, July 1 (PTI): Jubilant Organosys today announced its acquisition of the US-based generic pharmaceutical company Trinity Laboratories with its wholly-owned subsidiary Trigen Laboratories for a consideration of $12.25 million.

According to the buy-out deal signed today, Jubilant will immediately pick up 64 per cent equity in Trinity/Trigen for a cash payment of $12.25 million.

Of this, $8.25 million will be paid to the existing shareholders and the balance will be retained as growth capital.

The Indian company will invest another $8.42 million before December 2006 to raise its equity in Trigen to 75 per cent.

However, it may have to fork out another $4.05 million on conversion of existing share options to maintain its shareholding in Trigen.

Jubilant chairman-cum-managing director Shyam S Bhartia and Hari S Bhartia, the co-chairman and managing director, said in a joint statement: “This acquisition will strengthen our position in the global pharmaceuticals and life sciences industry and facilitate Jubilant’s entry into the high opportunity American market.”

Trigen’s existing employees will continue to drive the growth initiatives of jubilant in us generics market.

The US company is in the business of generic dosage forms and has a USFDA approved, global manufacturing practice-compliant facility in Maryland, USA.

The unit has an annual production capacity of 650 million tablets and 35 million capsules at present.

This capacity will be enhanced to 1 billion tablets per annum.

Trigen’s product portfolio focuses on the therapeutic areas of anti-hypertensive, diuretic and andrenocortical steroid.

It has six approved abbreviated new drug applications with another two applications are awaiting USFDA approval.

The company also has lined up 14 products, of which abbreviated new drug applications (ANDAs) for five will be filed in 2005. Jubilant will provide 10 pre-ANDAs to supplement Trigen’s present product pipeline.

Cadila dividend

Pharmaceutical major Cadila Healthcare today declared a dividend of 120 per cent for its shareholders for the financial year 2004-05.

The board of directors of the company has recommended a 120 per cent dividend, or Rs 6 per share having a face value of Rs 5.

The dividend declaration is, however, subject to shareholders’ approval, the company has informed the Bombay Stock Exchange.

Cadila Healthcare has as on date 6,28,06,854 equity shares, which means the company’s total dividend payout will be Rs 37.68 crore.