Sun Pharma buys US skincare firm Dusa for $230 m
Sun Pharma said on Thursday it will acquire US dermatology firm Dusa Pharmaceuticals, in a transaction valued at $230 million or R1,249 crore in cash. This will mark Sun Pharma’s third major move into the US through an acquisition, after buying Israel’s Taro, which has a large US presence, and Caraco. Sun Pharma had R6,000 crore of cash in hand as of September 2012.
The deal also brings into focus aggressive moves by Indian pharma companies to firm up their presence in the world’s largest drug market at a time of low asset prices. In the September quarter, Sun Pharma sold $244 million worth of drugs in the US, a growth of 38% over the previous year. For the fiscal first half ended September, it got 43% of its revenues from the US market.
Sun, which has a market value of $13.3 billion, will make a tender offer of $8 per share in cash for Dusa, a premium of 38% to Dusa’s closing price on Wednesday. The US company, focused on skin disease treatment, had revenues of $45 million for the year ended December, 2011.
“The dermatology segment has been an attractive point of entry to pharma companies, both in the US and in India,” said Hitesh Sharma, partner and national life sciences leader with Ernst & Young.
Industry sources said that Sun Pharma, which is generally cautious with its moves in the inorganic space, would have considered all the future growth aspects before betting on the derma company.
“Dusa has proven technical capabilities in
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