Matrix to buy 55% stake in Concord Biotech

Hyderabad-based Matrix Laboratories Ltd om Tuesday said that it will acquire a controlling stake in the Ahmedabad-based biotechnology company Concord Biotech Ltd for an undisclosed amount.

Matrix said the acquisition of a controlling stake of 55% was aimed at adding to its technology and manufacturing strengths and to utilise the market potential of the fermentation technology-based products of Concord, by leveraging its strong customer base and marketing strengths in global generic markets.

"Our investment in Concord Biotech is in line with our strategic intent to acquire fermentation technology and manufacturing capabilities," Matrix executive chairman N Prasad said in a statement.

"This is a key step in the evolution of Matrix and this has come in at a time when the major fermentation based products are going off-patent in the international markets," he said.

"This investment will add statins, enzymes and immunosuppressants to our product portfolio and hence, widen the range of products offered to Matrix's customer," Prasad added.

Matrix said it had signed a term sheet to this effect with the promoters of the closely-held Concord Biotech at Hyderabad, which has fermentation and bio-catalytic technology capabilities and United States Food and Drug Administration approved API manufacturing facilities.