Last week the two companies had signed definitive agreements providing for an increase in the equity stake from 6.94 per cent to 45 per cent at Rs160 per share aggregating to Rs214 crore through purchase of shares from existing promoters and a preferential offer to Ranbaxy by Zenotech. (See: Ranbaxy to up Zenotech Lab stake to 45 per cent for Rs214 crore)

Ranbaxy Laboratories proposes to acquire from the existing non-promoter shareholders of Zenotech Laboratories Ltd up to 68.93 lakh paid-up equity shares, representing 20 per cent of the expanded equity capital, at Rs160 for each fully paid-up equity shares to be paid in cash in accordance with the regulations.

In July 2006 Zenotech, which had signed a semi-exclusive deal with Ranbaxy earlier in March for the Malvinder Singh-controlled Ranbaxy to market its cancer injectible products, had offered a 6.94-per cent stake to Ranbaxy through a preferential allotment of 20-lakh equity shares of Rs10 each at an offer price of Rs100 per share (including premium) to Ranbaxy to raise funds of Rs20 crore.

The offer opens on November 19 and closes on December 8.

In February, this year, the two companies signed a global development and marketing agreement to market in the EU generic versions of biotherapeutics of G-CSF (filgrastim) using recombinant DNA technology for the treatment of chemotherapy-induced neutropenia (decrease in the number of a type of white-blood cells). (See: Ranbaxy enters biosimilar product space with Zenotech, targets EU markets) The worldwide market for the treatment is pegged at over $4 billion, of which the share of G-CSF is about $1 .6 billion.