Co–Operations Claris Lifesciences forms Joint Venture with Otsuka and Mitsui
Claris Lifesciences Ltd, India (Claris) has announced the completion of the transfer of its Infusion business for India and Emerging Markets to the Joint Venture (Claris-Otsuka) with Otsuka Pharmaceutical Factory Inc, Japan (OPF) and Mitsui & Co Ltd, Japan (Mitsui).
Ahemedabad/India – The Infusion business includes common solutions, anti-infective, plasma volume expanders and parenteral nutrition therapies for India and emerging markets. The company has transferred two of its existing plants to the Joint Venture. It will continue to have a 20% stake in the joint venture while Otsuka and Mitsui will hold 60% and 20%, respectively. Claris has received a total cash consideration of Rs. 1,050 crore as a part of the transaction from Claris-Otsuka and is valued at Rs. 1,313 crore.
This is in the Pipeline for the New Joint–Venture:
- The Company has used the part of the cash consideration towards debt prepayment of around Rs. 360 crore;
- Subject to regulatory approvals; the Company intends to reward shareholders via buyback of shares. The Company has allocated Rs. 300 crore for the buyback of shares.
- The remaining funds net of taxes and deal related expenses will be used to fund the future growth of the company.