Drug firm Sun Pharmaceutical Industries has entered into an agreement with InSite Vision to acquire the US-based eyecare firm for around $48 million plus related debt and other transaction costs to strengthen its branded ophthalmic portfolio in the US.
One of the company's subsidiaries has offered to acquire InSite Vision, Sun Pharmaceutical Industries said in a statement.
The transaction has a total equity value of approximately $48 million on a fully diluted basis plus related debt and other transaction costs assuming all shares of InSite Vision are tendered in the offer, it added.
The indirect wholly owned arm of Sun Pharma will commence a tender offer for all the issued and outstanding common stocks of InSite Vision at $0.35 per share in cash, a 30 per cent premium to the implied price, Sun Pharma said.
Sun Pharma North American Business CEO Kal Sundaram said, "This potential acquisition is part of our overall objective of transitioning to a specialty company. Besides dermatology, we have identified ophthalmics as one of the key segments for establishing our branded presence in the US."
The deal gives Sun Pharma access to four late stage branded ophthalmic products in the US.
For the six-month period ended June, InSite Vision recorded revenues of $3.8 million, an EBITDA loss of $6.4 million and a net loss of $7.5 million, it added.
"The potential addition of the InSite Vision portfolio serves as a significant step towards enhancing our branded specialty pipeline in the ophthalmic segment," Vice-President & Head of Sun Pharma's US Ophthalmic Business Jerry St Peter said.
InSite Vision has developed DuraSite and DuraSite2, the drug delivery platforms that are capable of extending the duration of drug retention, thus resulting in lower dosing frequency and potentially enhanced efficacy, Sun Pharma said.
Based on this technology, InSite Vision has developed a pipeline of late-stage clinical candidates and has recently filed a New Drug Application (NDA) with the US FDA for BromSite for treatment of inflammation and prevention of pain associated with cataract surgery, it added. At 12:55 hours, the stock of Sun Pharma was trading higher by 2.11 per cent at Rs 885 on BSE.
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