Transgene Biotek joins hands with Mauritius-based FII, to delist shares

MUMBAI: Pharmaceutical company Transgene Biotek has announced that Mauritius-based Stream Value Fund has agreed to join hands on a long-term basis to support its drug discovery activity, in return for equity participation and certain rewards on drug licensing or sale.

Last week the Hyderabad-based company said it is offloading undisclosed quantum of stake to a foreign institutional investor as a result of which the company's shares will be delisted from domestic stock exchanges.

The company is in the process of sending the postal ballot to all its shareholders seeking their approval.

If delisting is successful, the management of Transgene said, it will enjoy enhanced flexibility without requirement to comply with a long list of regulators' rules and regulations which often hinder efforts to speed up the drug development process.

Transgene has a pipeline of more than six molecules in development - both novel bio-technology and bio-generic drugs, the release said.

The two recent animal studies on its oral insulin project have yielded exceptional results that give rise to confidence that Transgene will soon be in strategic partnership with a large pharma company, the company said.