+1-888-308-5802     
News Contact Us

Cipla agrees to buy U.S.-based Avenue Therapeutics in a $215m deal

Author : Pankaj Singh | Published Date : 2018-11-14 

Pharmaceutical drug giant Cipla recently confirmed that its U.S.-based subsidiary, InvaGen Pharmaceuticals, Inc. has signed definitive agreements for acquiring specialty pharmaceutical company Avenue Therapeutics, also from the U.S. The deal is reported to be valued at US$ 215 million (approx. Rs 1,560 crore).

A Fortress Biotech company, Avenue Therapeutics, Inc. is focused on developing and commercializing the painkiller intravenous (IV) Tramadol. Cipla informed in its statement that the company aims to acquire Avenue Therapeutics in two stages.

According to the company, InvaGen or its affiliates would acquire shares amounting to a 33.3 percent stake in Avenue’s capital stock for US$35 million on a fully diluted basis. This will be achieved by the issuance of new shares by Avenue, the company mentioned. At the same time, with the stock issuance closing, three members will be appointed by InvaGen or affiliates, including one independent member, on the seven-member board of directors of Avenue.

The second stage would involve InvaGen or its affiliates acquiring the remaining common stock shares of Avenue for up to US$180 million in the aggregate. The closing of the second stage is subject to certain conditions, such as those associated with USFDA approval and the absence of restrictions pertaining to IV Tramadol, including Risk Evaluation and Mitigation Strategy (REMS), Cipla mentioned.

Umang Vohra, Managing Director & Global Chief Executive Officer of Cipla, said that the company’s investment in the proposed purchase of Avenue would help establish its presence in the US specialty business market. It aligns with Cipla’s intention to develop a specialty drug pipeline in the country, he added.

The company said this transaction would be subject to the approval from stockholders of Avenue Therapeutics and regulatory approvals, besides other closing conditions. Market reports show that Cipla shares were trading at Rs 528.25 per share on BSE at the time, down by 0.69 percent.

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

Owl Labs raises $15 million in Series B funding led by Spark Capital

Published Date: 2019-04-19         Author: Pankaj Singh

The funding will be used to speed up product manufacturing to meet increased demand, to grow the team, and increase its footprints in international market in the year 2019 and beyond. The video conferencing company Owl Labs has reportedly announced that it has raised $15 million in a Series B inv... Read More

Sensata to showcase its vehicle technologies at Auto Shanghai 2019

Published Date: 2019-04-15         Author: Pankaj Singh

The company would be showcasing its innovative portfolio of vehicle technologies at the event. Sensata would specifically be highlighting its innovations in vehicle electrification, connected & smart systems and vehicle & autonomy health monitoring. Sensata Technologies (Sensata), ... Read More

Paytm Mall to hire profusely, eyes Rs10,000 crore business in one year

Published Date: 2019-04-08         Author: Pankaj Singh

Paytm Mall claims it has expanded O2O platform across nation and observed 200% growth in the last 6 months. Paytm Mall, the Indian e-commerce firm, recently announced that it will be hiring 500 back end technical team members and is aiming for  a turnover of Rs10,000 crore in business in the... Read More

© 2019 Fractovia. All Rights Reserved