Cadila Close to Buying Rival CLARIS Lifesciences for About $534 Million: Report
Published: May 21, 2015
May 21, 2015
By Riley McDermid, BioSpace.com Breaking News Sr. Editor
One of India’s largest drugmakers, Cadila Healthcare Ltd (CADI.NS), is rumored to be holding late-stage talks to acquire the generic sterile injectables business of rival CLARIS Lifesciences Limited for $534 million, the Economic Times newspaper reported today.
The daily paper cited sources familiar with the deal and said that the companies are involved in final due diligence on the deal, which they expect to announce in June.
The news excited global markets, pushing Claris Lifesciences up 8.72 percent to Rs 305.50.
Claris has long been coveted by larger drugmakers because almost three quarters of its business comes from booming emerging markets like Russia and Brazil. With a market capitalization of $240.5 million, the company has been an attractive target for larger suitors looking to add its blood products, anti-infectives and various medical device product lines to their portfolios.
In February multiple news reports said companies had been circling Claris for a buy, but the firm said at the time it had no intention to sell. Representatives from Claris did not return requests for comment Thursday.
Cadila, however, issued a statement saying that “the news item is speculative in nature and it is company's policy not to respond to any such speculative news items.”
“As a responsible listed company, the company informs stock exchanges of all information which is required to be disclosed, on timely basis, in terms of the Listing Agreement,” said Cadila.
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