Sun Pharma inks pact to buy DUSA for $230 million
Sun Pharmaceutical Industries, on Thursday, said it had inked a pact to acquire U.S.-based DUSA Pharmaceuticals for around $230 million (about 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 photo-dynamic therapy platform, Sun Pharma said in a statement.
Under the terms of the agreement, a 100 per cent subsidiary of Sun Pharma 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, it added.
The transaction has a total cash value of about $230 million, it said.
The transaction has been unanimously approved by the boards of directors of both companies and DUSA s board has recommended that the company s shareholders tender their shares pursuant to the tender offer, it added.
DUSA has proven technical capabilities in photo-dynamic 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 was confident that Sun Pharma would build upon the solid foundation DUSA had established in the U.S. dermatology market. DUSA s Levulan combination therapy is approved by the 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, on Thursday, closed at Rs.696.15 on the BSE, down 0.76 per cent from its previous close.