Jubilant Organosys Ltd, plans to buy Canada's Draxis Health for about $255 million as it seeks entry into North America's key radiopharmaceutical sector.

Jubilant said it would pay $6.00 a share for all the outstanding shares of the specialty health-care company. Draxis's board has approved the transaction and recommends that shareholders accept the offer.

The two key platforms at Quebec-based Draxis are its Draximage radiopharmaceutical division and its contract manufacturing business.

Competition in the nuclear isotope business was ratcheted up recently after a U.S. company bought a similar operation from Bristol Myers Squibb.