Australia's Rapid Nutrition to acquire 74 % stake in Cheminnova Remedies

Australia's natural healthcare supplements company Rapid Nutrition will acquire a 74-per cent stake and enter into a dilutive equity-based joint venture with Hyderabad-based Cheminnova Remedies, a pharmaceutical contract manufacturer.

Under the terms of the joint venture agreement, Queensland-based Rapid Nutrition will acquire a 74-per cent stake in Cheminnova in next 18 to 24 months through a special purpose vehicle of the Australian company in India.

Financial terms of the deal were not disclosed by the companies.

The JV would facilitate work in four areas - research, product development, manufacturing and marketing.

"The current holding of the promoters is 100 per cent and Rapid Nutrition will hold 74-per cent equity in 18 to 24 months time and we will end up with 26 per cent and it is a committed JV," Vasudeva Rao, managing director at Cheminnova told the media in a press conference.

Founded in 2001 by late Dr M. Seshgiri Rao, Cheminnova, manufactures finished formulations of leading brands for pharma majors including Dr Reddy's, Astra Zeneca, Cipla, Abbott Laboratories, TTK Pharma, Piramal, Dabur and Lupin.