Co–Operations Claris Lifesciences forms Joint Venture with Otsuka and Mitsui

Editor: Dominik Stephan

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).

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(Picture: PROCESS)

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.