Emcure consolidates stake in Gennova, under stewardship of promoter family scion

Emcure Pharmaceuticals Limited has consolidated its holding in Gennova Biopharmaceuticals, making it a wholly owned subsidiary, under the stewardship of Samit Mehta, part of the promoter family.

Gennova is the company behind India’s first mRNA Covid-19 vaccine. But, over the weekend, Emcure said that Gennova’s mRNA business had been transfered to Immunoscript Life Science Private Limited, promoted by Gennova former Chief Executive Officer Dr Sanjay Singh, for ₹139 crore.

Outlining details on Emcure’s consolidation, the company said on Monday, it was acquiring the entire 12.05 percent minority stake in Gennova held by Singh and others – taking Emcure’s ownership to 100 percent. Emcure will fork out ₹23.18 crore for the transaction, it said.

Further, it pointed out that Gennova will be led by Samit Mehta, son of the founder Satish Mehta, and the company would focus on its biologics franchise (Elaxim/TENECTASE, Vintor, Xgrast/PEGEX and Hamsyl), biosimilars development, and adjacent therapeutic platforms, leveraging its established mammalian and microbial biomanufacturing platforms, a note from the company said.

Satish Mehta, Emcure Managing Director and Chief Executive Officer, said that Singh’s two decade-long stewardship had “built platforms, products, and a culture that will continue to fulfil Gennova’s mission of transforming healthcare.” The latest stake acquisition will “simplify Gennova’s ownership, sharpen its strategic focus, and position it under Samit Mehta’s leadership for its next phase of growth in biologics and biosimilars,” the note said.

Samit Mehta, Gennova Whole Time Director and Chief Executive CEO, said, Gennova will continue to anchor the Group’s biologics and biosimilars capabilities. “Our work will complement Emcure’s broader R&D (research and development) and pipeline priorities, with a focus on execution, quality and disciplined development across our chosen therapy areas,” it added.

The transaction is not expected to have a material impact on Emcure’s consolidated financials or its capital allocation framework, it said, adding its “deleveraging trajectory, capex plans and R&D investment plans remain unchanged.”

Gennova is a ₹49-crore company and it mRNA business, at ₹6.47 crore, represented 0.71 percent of consolidated revenue of the company of ₹911.58 crore, Emcure said.