Jubilant Pharmova Ltd | Latest market updates

Jubilant Draximage Inc. Announces $50 Million Investment To Expand PET Radiopharmacy Network In U.S.

Jubilant Pharmova Ltd., through its radiopharma arm, announces expansionary investment worth $50 Million to open 6 new PET facilities in the US.

In an exchange filing dated June 14, 2024, Jubilant Pharmova Limited informed the exchanges about its investment to expand the Positron Emission Tomography (PET) Radiopharmacy network in the USA. The company’s radiopharmacy arm, Jubilant Draximage Inc., a wholly-owned subsidiary of the company announced a 50 million dollar investment for opening six PET radiopharmacies in strategic locations across the United States. These facilities are marked to be operational by FY27-28.

Why the US Market?

The radiopharmaceutical industry is geared to grow from $5 Billion in 2023 to $20 Billion in 2030. The increasing demand for PET imaging and advanced radiopharmaceutical therapies has led to exponential growth in the PET imaging market. With the innovation of new products like diagnostic agents indicated for positron emission tomography (PET) of Prostate-specific membrane antigen (PSMA) positive lesions in men with prostate cancer and novel diagnostics that reliably visualize β-amyloid neuritic plaques for more personalized patient management in adult patients with cognitive impairment who are being evaluated for Alzheimer’s Disease (AD) and other causes of cognitive decline.

About the company:

Jubilant Pharmova Limited is a company with a global presence engaged in radiopharma, allergy immunotherapy, SDMO of strike injectables, contrast research development and manufacturing (CRDMO), etc. Through its subsidiary, it is involved in the manufacturing and supply of Radiopharmaceuticals with a network of 46 radiopharmacies in the US, under its radiopharma business. This business is a wholly-owned subsidiary of Jubilant Pharmova Limited known as Jubilant Pharma Limited. This is achieved by the radiopharmaceutical division of Jubilant Pharma Limited known as Jubilant Radiopharma. This investment will expand the company’s PET radiopharmacy network to nine sites and overall radiopharmacy

network to fifty-two sites, solidly positioning Jubilant’s radiopharmacy network as the second largest in the US.

Conclusion

As of Q4FY24, Jubilant Pharmova had reported a gross debt of Rs.3414 Crore and a net debt of Rs. 2457 Crore. However, with the investment its US division issued a notice to voluntarily repay a $75 million term loan by 24th June 2024, showing growth.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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