Cipla to acquire US specialty drugmaker Avenue Therapeutics for Rs 15.6 bn

Acquisition to help the company build a specialty pipeline in the US

Cipla has entered into an agreement to acquire US-based specialty pharma company Avenue Therapeutics Inc for $215 mn or around Rs 15.6 bn. This is in line with Cipla's strategy of building a specialty drugs pipeline in the US. 

Cipla's US subsidiary InvaGen Pharmaceuticals Inc will make the acquisition in two stages, the company said. In the first stage, InvaGen or its affiliates will acquire a 33.3 per cent stake in Avenue's via new shares for around $35 mn (currently expected to be 5,833,333 shares at $6.00 per share).

Upon the completion of the first stage, InvaGen will appoint three