+1-888-308-5802      . .

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

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

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

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

Bayers new CEO initiates management job cuts to accelerate decision-making

Bayers new CEO initiates management job cuts to accelerate decision-making

Published Date: 2023-09-15         Author: Pankaj Singh

Bayer newly appointed CEO, Bill Anderson, has reportedly unveiled plans to streamline the companys management structure in a bid to expedite decision-making processes. This marks the first step in a broader effort to transform the embattled German company, which has been under pressure from inv... Read More>>

Smurfit Kappa in Merger Talks with WestRock worth $19 Billion

Smurfit Kappa in Merger Talks with WestRock worth $19 Billion

Published Date: 2023-09-08         Author: Pankaj Singh

Smurfit Kappa, a prominent player in the packaging industry, is reportedly engaged in merger discussions with its US counterpart, WestRock. This prospective merger has the potential to create a cardboard box-making powerhouse boasting a market value approaching $19 billion (€17.8 billion). Furt... Read More>>

RBC plans job cuts to take on anticipated economic softening

RBC plans job cuts to take on anticipated economic softening

Published Date: 2023-08-25         Author: Pankaj Singh

The Royal Bank of Canada is reportedly planning to reduce its workforce by approximately 1,800 jobs as part of cost-cutting measures, on account of the anticipated upcoming economic landscape. This decision comes after the country's largest bank surpassed analysts' predictions for the third ... Read More>>

© 2024 Fractovia. All Rights Reserved