Sun Pharmaceutical Industries rose 2.57% to Rs 889 at 10:03 IST on BSE after the company announced that one of its subsidiary has entered into an agreement and plan of merger with InSite Vision Inc.
The announcement was made during market hours today, 16 September 2015.
Meanwhile, the BSE Sensex was up 199.64 points, or 0.78%, to 25,905.57
On BSE, so far 7.84 lakh shares were traded in the counter, compared with an average volume of 2.17 lakh shares in the past two weeks.
The stock hit a high of Rs 889.95 and a low of Rs 876.30 so far during the day. The stock hit a record high of Rs 1,200.70 on 7 April 2015. The stock hit a 52-week low of Rs 748.15 on 26 September 2014.
The large-cap company has an equity capital of Rs 240.65 crore. Face value per share is Rs 1.
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Sun Pharmaceutical Industries (Sun Pharma) today, 16 September 2015 announced that one of its subsidiary has entered into an agreement and plan of merger with InSite Vision Inc. (InSite Vision) under which a Sun Pharma subsidiary has offered to acquire InSite Vision. InSite Vision focuses on developing new specialty ophthalmic products, including three late stage programs.
Sun Pharma is in the process of establishing a branded ophthalmic business in the US. This proposed acquisition of InSite Vision, coupled with the recent in-licensing of Xelpros (Latanoprost BAK-free eye drops) in June 2015, are steps in this direction, Sun Pharma said. These deals give Sun Pharma access to four late stage branded ophthalmic products in the US, the company said.
Under the terms of the agreement and plan of merger, an indirect wholly owned subsidiary of Sun Pharma will commence a tender offer for all of the issued and outstanding common stock of InSite Vision at a price of $0.35 per share in cash, a 30% premium to the implied price per share under the terminated 'Amended and Restated Agreement and Plan of Merger' between InSite Vision and a competing bidder for InSite Vision's common stock based on the stock price of the competing bidder as of 11 September 2015.
The transaction has a total equity value of approximately $48 million on fully diluted basis plus related debt and other transaction costs assuming all shares of InSite Vision are tendered in the offer. The transaction has been approved by the board of directors of the Sun Pharma subsidiary. InSite Vision's board of directors has also approved the transaction and unanimously recommended that its stockholders tender their shares pursuant to the tender offer.
For the six month period ended 30 June 2015, InSite Vision recorded revenues of $3.8 million, an EBITDA loss of $6.4 million and a net loss of $7.5 million.
Sun Pharma said that the acquisition is subject to InSite Vision's stockholders tendering at least a majority of InSite Vision's outstanding shares (determined on a fully diluted basis), or, alternatively, InSite Vision stockholders representing a majority of the outstanding shares of InSite Vision's common stock voting to approve the transaction as required by applicable law, in addition to other customary closing conditions. The acquisition is expected to close in the fourth quarter of 2015, the company said.
Kal Sundaram, CEO of Sun Pharma's North American Business said that this potential acquisition is a part of the company's overall objective of transitioning to a specialty company. Besides Dermatology, the company has identified Ophthalmics as one of the key segments for establishing branded presence in the U.S, Kal Sundaram said.
Sun Pharmaceutical Industries' consolidated net profit dropped 60.2% to Rs 478.96 crore on 3.3% growth in net sales to Rs 6522.16 crore in Q1 June 2015 over Q1 June 2014.
Sun Pharmaceutical Industries manufactures specialty and generic medicines, targeting a wide spectrum of chronic and acute treatments. The therapeutic segments include psychiatry, anti-infectives, neurology, cardiology, orthopaedic, diabetology, gastroenterology, ophthalmology, nephrology, urology, dermatology, gynaecology, respiratory, oncology, dental and nutritionals.
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