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Drug major Cipla on Friday said its subsidiary InvaGen Pharmaceuticals Inc has completed the first tranche of 33.3 per cent stake buy in US-based speciality business firm Avenue Therapeutics.
In November last year, the company had said it intends to acquire Avenue Therapeutics, a Fortress Biotech company, for up to $215 million (around Rs 1,560 crore) in two stages.
Cipla had also said the first tranche of 33.3 per cent stake will be acquired for $35 million, while the remaining stake in the second stage for up to $180 million.
In a BSE filing, Cipla said its wholly-owned subsidiary InvaGen Pharmaceuticals has “completed the first stage closing of the Avenue Therapeutics Inc, transaction representing an acquisition of 33.3 per cent stake in Avenue’s capital stock on fully diluted basis on February 8, 2019.
Cipla had also said the second stage closing will be subject to the certain conditions, including those related to USFDA approval and the absence of any Risk Evaluation and Mitigation Strategy (REMS) or similar restrictions with respect to IV Tramadol.
“Our investment in and proposed acquisition of Avenue establishes our presence in the speciality institutional business in the US... This investment is in keeping with our intention to build a speciality pipeline in the US market,” Cipla MD & Global Chief Executive Officer Umang Vohra had said after signing the definitive agreements to acquire the company.
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