The Board of directors of SMS Pharmaceuticals Ltd had earlier approved to set up a JV with Chemo, Switzerland. Considering the transaction costs involved in setting up a JV in Switzerland and the requirement to appoint a Nominee Director having Switzerland Citizenship, it has been agreed between the JV partners to change the location to Spain and register the JV in Spain.
The initial cost of capital for setting up the JV is about 5,000 Euros which will be shared at 55% and 45% between Chemo and SMS Pharma respectively.
The objective of the JV is to develop the products and manufacture them in SMS Pharma facility. The technical ownership of the JV products will be the property of the JV Company.
Shares of SMS PHARMACEUTICALS LTD. was last trading in BSE at Rs.47.9 as compared to the previous close of Rs. 48. The total number of shares traded during the day was 452 in over 50 trades.
The stock hit an intraday high of Rs. 47.95 and intraday low of 47.2. The net turnover during the day was Rs. 21591.