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Canada Approves Draxis Health Acquisition

Quebec Superior Court has approved the $255-million friendly takeover of Draxis Health by India's Jubilant Organosys.

TORONTO (AP) -- Draxis Health Inc. has won approval from the Quebec Superior Court for its takeover by India's Jubilant Organosys Ltd.

Shareholders of the drug producer approved the US$255-million friendly takeover by Jubilant last week.

Jubilant has offered US$6.00 per share for Draxis, which has 500 employees and manufacturing operations in Montreal.

Jubilant, listed on the Mumbai stock market, is one of India's largest custom drug research and manufacturing companies. In addition to several locations in India, it has two in the United States, in Maryland and Washington state, and has expressed interest in expanding in North America.

Draxis produces a generic version of Cardiolite, a commonly used drug for nuclear medicine imaging. It also makes sterile products including liquid and freeze-dried injectables and sterile ointments.

The deal is expected to close shortly.

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