Drug major Sun Pharmaceutical Industries has made a tender offer to acquire US-based eyecare firm InSite Vision for USD 0.35 per share in cash.
The company "has commenced a tender offer through its indirect wholly owned subsidiary, Thea Acquisition Corporation, for all of the outstanding shares of common stock of InSite Vision Incorporated for USD 0.35 per share in cash, without interest and less any required withholding taxes," Sun Pharma said in a statement.
The tender offer is being made pursuant to an offer to purchase, dated today, and "in connection with the previously announced agreement and plan of merger, dated September 15, 2015, as amended and restated as of September 28, 2015, by and among InSite Vision, Ranbaxy Inc and Thea Acquisition Corporation," it added.
The tender offer will expire on October 27, 2015, at 12 midnight, New York City time, unless extended in accordance with the merger agreement and the applicable rules and regulations of the Securities and Exchange Commission, Sun Pharma said.
The company had earlier this month had entered into an agreement with InSite Vision to acquire the eyecare firm for around USD 48 million plus related debt and other transaction costs to strengthen its branded ophthalmic portfolio in the US.
Highlighting the company's strategy, Sun Pharma North American Business CEO Kal Sundaram had said: "This potential acquisition is part of our overall objective of transitioning to a speciality company. Besides dermatology, we have identified ophthalmics as one of the key segments for establishing our branded presence in the US."
The deal gives Sun Pharma access to four late stage branded ophthalmic products in the US.
For the six-month period ended June, InSite Vision recorded revenues of USD 3.8 million, an EBITDA loss of USD 6.4 million and a net loss of USD 7.5 million, Sun Pharma said.
"The potential addition of the InSite Vision portfolio serves as a significant step towards enhancing our branded speciality pipeline in the ophthalmic segment," Vice-President and Head of Sun Pharma's US Ophthalmic Business Jerry St Peter had said at that time.