Cadila Healthcare Reportedly Near Deal To Buy Claris

Cadila Healthcare Ltd, among India's top ten drugmakers, is in late-stage talks to buy smaller rival Claris Lifesciences Ltd for about 34 billion rupees ($534 million), a business newspaper reported on Thursday, citing sources aware of the talks.

 

Both companies are engaged in last-minute due diligence negotiations, and the deal is expected to be announced next month.

 

Cadila is likely to pay a hefty premium, valuing the company at Rs 3,100-3,400 crore, the reports said.

 

Claris, which has a market capitalisation of about $240.5 million, makes specialty generic drugs including blood products and anti-infectives, as well as the delivery systems for such products, such as vials, ampoules and intravenous bags.

 

About half of the company's sales come from 70 emerging markets, including Brazil and Russia.

 

Media reports in February said several global and domestic drugmakers were in a race to buy Claris's injectable products business, but Claris denied having any intention to sell.

 

A spokeswoman for Cadila and a spokesman for Claris did not immediately respond to a request for comment on Thursday.

 

Shares of Claris Lifesciences surged nearly 18 per cent on Thursday. On the volume front, 17.76 lakh shares of the company were traded in early deals at the NSE.

 

(Agencies)