Sun Pharmaceutical Industries Limited announced plans to acquire a 16.33 per cent stake in Surgimatix Inc for $3.05 million in an exchange filing on Tuesday. It is anticipated that the transaction will be finalised by the end of February 2024, pending the fulfilment of certain conditions.
In addition to the acquisition of shares, Sun Pharma will retain the option to receive warrants equivalent to 20 per cent of the shares purchased, exercisable at $4.867.
Headquartered in Illinois, US, Surgimatix Inc is a Michigan-based company specialising in the development of a proprietary soft tissue fixation device for laparoscopic hernia repair and other minimally invasive surgeries. Although Surgimatix Inc has yet to commence commercial operations, it is focused on advancing innovative solutions for surgical procedures.
Recently, Sun Pharma also entered into a definitive merger agreement with Taro Pharma to acquire the remaining stake it doesn't currently own. Both groups have agreed to a price of $43.00 per share. However, the completion of the merger agreement is contingent upon various closing conditions, including shareholder approval.
Sun Pharma reported a 16.5 per cent year-on-year (YoY) increase in net profit to Rs 2,523.8 crore, driven by a 9.5 per cent growth in sales amounting to Rs 12,156.9 crore in the third quarter of the financial year 2023-24 (Q3FY24). The company witnessed double-digit revenue growth in its US and India operations, as well as its global specialty business. Adjusted net profit (excluding exceptional items) for Q3FY24 stood at Rs 2,593.6 crore, marking a 19.7 per cent increase.
India contributes 31 per cent of the total sales, while the US market constitutes approximately 33 per cent.
Sun Pharma shares were trading at Rs 1,538.75 at 3:30 pm on the BSE on Tuesday.
