TCG Lifesciences, the integrated drug research and development company, is close to acquiring a leading clinical trials company in India.
Sources in The Chatterjee Group-promoted company confirmed that talks were on but declined to divulge the identity of the target firm. Industry sources said TCG had initiated dialogue with a few firms, including the Vapi-based Jai Research Foundation, owned by the promoters of United Phosphorus Limited. Jai Research Foundation executives declined to comment on the development.
According to sources close to the development, the transaction would be in the form of an equity convertible business collaboration through which TCG would take over the company over a period of a year or two. The enterprise value of Jai Research is over Rs 200 crore (Rs 2 billion).
TCG sources said that clinical trials form a critical missing link in TCG Life Sciences' activities. "The setting up of a greenfield project will take up to two years. On the other hand, acquisition of company would help us saving time," they added.
Sources said the targeted acquisition was aimed at making TCG an end-to-end solution provider in the drug research and development space.
TCG Life has four group companies engaged in different areas of pharma research spanning from basic and innovative research, chemical synthesis, gene-based research and clinical trials.
TCG Life has been keen to become a fully integrated drug research and development company. Earlier, the group had plans to enter animal trials, either by picking up an existing third-part facility in India or by building its own set-up.
Jai Research Foundation is an international contract research organisation providing comprehensive regulatory studies on agrochemicals, biocides, pharmaceuticals, fine chemicals, food additives and consumer products.
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