Jubilant Pharmova shares skyrocketed to a three-year high on Monday, reaching Rs 910.25 apiece, after the company announced a significant acquisition deal. Its Singapore-based subsidiary, Jubilant Biosys Innovative Research Services, has agreed to acquire Pierre Fabre’s R&D Centre in France, marking a major expansion into the European market.
The acquisition will establish a centre of excellence in Europe for biologics and antibody drug conjugates, opening up a vast market potential of $500 million. The deal involves the incorporation of a new company in France, which will acquire Pierre Fabre’s R&D Centre, including its R&D site and activities at Saint Julien, France.
Shares of Jubilant Pharmova Ltd. rose sharply, gaining as much as 6.6% to reach the highest level since May 28, 2021. Although the stock pared some of its gains, it still traded 5.34% higher at Rs 899.50 apiece as of 12:30 p.m.
This significant development has boosted investor confidence, with the stock rising 65% on a year-to-date basis and 92% in the last 12 months.