Sun Pharmaceutical Industries on Thursday said it has inked a pact to acquire US-based DUSA Pharmaceuticals for around $230 million (around Rs 1,250 crore).
Sun Pharma and DUSA Pharmaceuticals have entered into a definitive agreement under which Sun Pharma will acquire DUSA, a dermatology company focused on developing and marketing its Levulan photodynamic therapy platform, Sun Pharma said in a statement.
Under the terms of the agreement, a 100 per cent subsidiary of Sun Pharma Ltd will commence a tender offer for all of the outstanding common stock of DUSA at a price of $8 per share in cash, a 38 per cent premium to the closing price of Dusa's common stock on November 7, 2012, it added.
"The transaction has a total cash value of approximately $230 million," it said.
The transaction has been unanimously approved by the boards of directors of both companies and DUSA's board has recommended
"DUSA has proven technical capabilities in photodynamic skin treatments, with USFDA approved manufacturing. DUSA's business brings us an entry into dermatological treatment devices, where we see good growth opportunities," Sun Pharma managing director Dilip Shanghvi said.
Commenting on the deal, DUSA Pharmaceuticals Inc president and CEO Robert Doman said the company is confident that Sun Pharma will build upon the solid foundation DUSA has established in the United States dermatology market.
DUSA's Levulan combination therapy is approved by Food and Drug Administration for treatment of non-hyperkeratotic actinic keratoses of the face or scalp.
Leerink Swann LLC acted as exclusive financial advisor and Reed Smith LLP acted as legal advisor to DUSA Pharmaceuticals, the company said.
Shares of Sun Pharma today closed at Rs 696.15 apiece on the BSE, down 0.76 per cent from its previous close.
