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Laurus Labs enters into JV agreement with KRKA, Slovenia
IMT News Desk
Laurus Labs enters into JV agreement with KRKA, Slovenia
IMT News Desk
The joint venture will enable the production of finished products for the new markets
Krka, an international generic pharmaceutical company in Novo Mesto, Slovenia and Laurus Labs have reached an agreement to establish a joint venture company Krka Pharma in Hyderabad. Krka will hold 51 per cent and Laurus' 49 per cent share in the joint venture. The registered capital of the newly founded company amounts to Indian rupees equivalent to 50 million euros. The joint venture will enable the production of finished products for the new markets, including the Indian market.
Krka and Laurus have been working together contractually for many years and their businesses complement each other. The partners have discussed opportunities to strengthen cooperation and create synergies by combining their knowledge and resources. It is expected that the necessary procedures and documentation for the registration of the new joint venture company will be finalised by the end of March 2024.
The parties have agreed on a step-by-step development of the joint venture company. The newly formed company will develop a plan to enter the Indian market and other markets outside the European Union where neither party is currently present with its finished products.
The registered capital of the newly established company amounts to Indian rupees equivalent to 50 million euros. Krka and Laurus have agreed to subscribe to the registered capital in stages, depending on the financing needs of the gradual development of the joint venture's business activities.
Commenting on this development, CEO, Laurus Labs Dr Satyanarayana Chava said, "Our business relationship with Krka has matured over the years and growing year on year. This JV further cemented our relationship to enhance product portfolio and markets. The JV also have plans to service quality products to the Indian market over the period."
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