Baxter acquires Claris Injectables for $625 million

Baxter International Inc, one of the leading global players in sterile medication production and delivery, has acquired Claris Injectables Limited, a wholly-owned subsidiary of the Ahmedabad-based Claris Lifesciences Limited, for total consideration of approximately $ 625 million. 

Claris Injectables will add proven capabilities in production of essential generic injectable medicines, such as anaesthesia and analgesics, renal, anti-infectives and critical care in a variety of presentations including bags, vials and ampoules. The boards of directors of both companies have approved the proposed acquisition, which is expected to close in the second half of 2017. 

Sterile medication production is a core competency for Baxter, which manufactures a broad range of essential generic injectable medications - including both frozen and liquid preparations - that treat some of the most pressing healthcare needs facing patients today. Baxter currently participates in a differentiated segment of the generic injectables market with difficult-to-manufacture oncology drugs and a broad portfolio of standard-dose, ready-to-use premixed injectable products including essential anti-infectives, analgesics and critical care medicines. The global sterile generic injectables market is estimated at more than $ 40 billion growing at a 10 percent compound annual growth rate.

Claris Injectables is one the leading players in the Indian generic injectables pharmaceutical market with a successful 15-year history. The acquisition of Claris Injectables will provide Baxter with a robust pipeline and marketed portfolio of generic injectables with 11 molecules currently approved in the US along with fully integrated research and development expertise and three manufacturing facilities registered with a number of global regulatory agencies, including the US Food & Drug Administration (FDA). 

Claris Injectables will be a foundational asset to accelerate Baxter’s strategy to become a global leader in the injectable pharmaceuticals space. Baxter will build upon Claris Injectables’ existing footprint by adding Baxter’s differentiated technologies and making strategic investments to expand Claris Injectables’ R&D pipeline and manufacturing capacity. Through this combination, Baxter anticipates launching seven to nine new products annually over the next few years, increasing to 10-15 anticipated new product launches a year beyond 2019.

“The Claris Injectables acquisition will expand Baxter’s presence in the fast growing, global generic injectable pharmaceuticals space and accelerate our growth trajectory with high-value, essential medicines that will benefit patients worldwide. The capabilities we gain with Claris Injectables will augment and complement our differentiated technologies, expertise and extensive presence in the hospital channel to create a pathway for Baxter to become a global leader in generic injectables,” said Jose (Joe) Almeida, chairman and chief executive officer, Baxter.

In 2016, Claris Injectables is expected to deliver annual global revenues in excess of $100 million. Global revenues for Claris Injectables business have increased by double-digits annually over the last several years driven by new product launches and geographic expansion. Baxter expects to finance the transaction through cash on hand, debt or a combination.

Arjun Handa, executive vice chairman and group MD of Claris Lifesciences Ltd, commented, “Baxter’s deep and long history, roots in the hospital business, and expertise to advance the business as a strategic platform will catapult the combined organisation’s R&D, manufacturing and people capabilities. I strongly believe that this weaves forward a promising pathway for our patients, team members, partners and stakeholders.”