Drug firm Claris Lifesciences Ltd today divested 80 per cent stake in its infusion business for a total consideration of Rs 1,050 crore and has entered into a tripartite joint venture with two Japanese firms for the same.
The Ahmedabad-based firm has executed agreements for a joint venture Claris-Otsuka; with Japan-based Otsuka Pharmaceutical Factory (OPF) and Mitsui & Co Ltd for its infusion business in India and emerging markets, Claris Claris Lifesciences said in a statement.
The joint venture (JV) will include anti-infectives, plasma volume expanders and parenteral nutrition therapies of Claris for India and the emerging markets, it added.
Under the JV agreement, Claris will transfer the infusion business to the JV Claris-Otsuka. OPF will have 60 per cent stake in the JV while Mitsui and Claris will have 20 per cent each, it said.
"Business is valued at Rs 1,313 crore and Claris (will) receive total cash consideration of Rs 1,050 crore over multiple agreements," the Indian drug firm said.
Claris plans to utilise the cash to fuel its existing business growth, deleveraging, and reward shareholders, the company said.
Commenting on the development, Claris MD and CEO Arjun Handa said the partnership with both Otsuka, with its global expertise in the infusions business and their speciality products; and Mitsui with its global trading and financial expertise will add significant value to the JV.
"This partnership enables Claris to focus and intensify its efforts to build out its speciality injectables business globally," he added.
According to the company, Handa will be chairman of the JV firm.
Commenting on the deal, OPF President Ichiro Otsuka said the company is committed to being the best partner of both patients and healthcare professionals in the field of clinical nutrition, and together with Claris and Mitsui will contribute to the betterment of medical care in India.
As part of the deal, two of the out of the five plants of Claris would be transferred to joint venture firm Ė Claris- -Otsuka, the company said.
The JV will co-brand its products in India and across emerging markets utilising the manufacturing and marketing competence of Claris, it added.
Shares of Claris Lifesciences today closed at Rs 264.55 on the BSE, down 3.75 per cent from its previous close.