Claris Lifesciences jumped 8.31% to Rs 388.25 at 10:30 IST on BSE after the company announced the sale of its global generic injectables business to Baxter for $625 million.
The announcement was made after market hours yesterday, 15 December 2016.Meanwhile, the S&P BSE Sensex, was down 24.13 points or 0.09% at 26,509.35.
Huge volumes were witnessed on the counter. On the BSE, 17.12 lakh shares were traded in the counter so far, compared with an average daily volume of 2.45 lakh shares in the past one quarter. The stock had hit a high of Rs 430.10 and low of Rs 386.20 so far during the trading session.
The small cap company has equity capital of Rs 54.57 crore. Face value per share is Rs 10.
Claris Lifesciences announced that it has entered into definitive agreements with Baxter International Inc. for the sale of its global generic injectables business for a total gross consideration of $625 million.
Claris Lifesciences announced that the board of directors of the company at a meeting held yesterday, 15 December 2016 approved the sale and transfer of the injectable business of the company by way of sale of the subsidiary companies, namely, Claris Injectables Limited, Claris Pharmaservices, Elda International DMCC, Claris Lifesciences Inc., Claris Lifesciences (UK) Limited, Claris Lifesciences (Aust) Pty. Limited, and Claris Lifesciences Philippines, INC.
Claris Lifesciences said that injectible business has been growing rapidly over the last few years and has attracted significant interest. The injectable business had contributed revenue of Rs 623 crore in Claris' consolidated revenue for the year ended 31 March 2016 (FY 2016), which is 78% of the company's total revenue.
The expected date of the completion of sale is within 12 months. Claris intends to repatriate a significant majority of the net cash proceeds to the shareholders.
Baxter International is a US based company which provides a broad portfolio of essential renal and hospital products.
Claris Lifesciences' consolidated net profit jumped 169.9% to Rs 32.39 crore on 0.7% decline in net sales to Rs 192.13 crore in Q2 September 2016 over Q2 September 2015.
Claris Lifesciences is the holding company of Claris Injectables. Claris Injectables is a wholly-owned subsidiary of Claris Injectables dealing in specialty injectables business. Claris Lifesciences also has minority stake in Claris Otsuka Private Limited, a joint venture with Japan's Otsuka Pharmaceutical Factory, Inc. and Mitsui & Co. for Infusion business in India and emerging markets.
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