Companies

Sun Pharma to pay $230 m for US dermatology firm DUSA

Our Bureau Mumbai | Updated on March 08, 2018 Published on November 08, 2012

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Sun Pharmaceutical has entered into an agreement to acquire DUSA, a US-based dermatology company, for about $230 million (over Rs 1,200 crore) in cash.

“DUSA’s business brings us an entry into dermatological treatment devices, where we see good growth opportunities,” Sun Pharma Managing Director Dilip Shanghvi said, adding that the company has proven technical capabilities in photodynamic skin treatments, with USFDA approved manufacturing. DUSA , which had revenues of some $45 million for 2011, is focused on developing and marketing its Levulan (aminolevulinic acid HCl) photodynamic therapy platform. Levulan is a combination therapy approved by the US regulator for treatment of non-hyperkeratotic actinic keratoses of the face or scalp, the company said. A pre-malignant condition, seen as crusty patches of skin, this is a frequently diagnosed skin disease in the US.

In its last acquisition of Israeli generic drugs-maker Taro, Sun had been locked in a multi-country battle over three years. Sun will fund the latest transaction from its kitty of $1 billion, a company official said.

Agreement

Under the terms of the agreement, a wholly-owned subsidiary of Sun Pharma will make a tender offer for all of the outstanding common stock of DUSA at $8 a share in cash, a 38 per cent premium to the closing price of DUSA’s common stock on November 7, Sun said.

The transaction has been unanimously approved by the boards of directors of both companies and DUSA’s board has recommended that the company’s shareholders tender their shares pursuant to the tender offer.

The closing of the tender offer will be subject to certain conditions, including the tender of a number of DUSA shares that represent at least a majority of the total number of DUSA’s outstanding shares (assuming the exercise of all options and warrants and vesting of restricted shares), the expiration of the waiting period under the Hart-Scott-Rodino Anti-trust Improvements Act and other customary conditions, Sun said. [email protected]

Published on November 08, 2012
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