Joint Ventures Claris Lifesciences forms joint venture with Otsuka Pharmaceutical and Mitsui
Claris Lifesciences 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 Japan (OPF) and Mitsui Japan (Mitsui).
Ahemedabad - 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.
- 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.
Claris Growth plans
Claris recently resumed its supply to the United States and is one of the few injectables companies in India to have its own front end in the US, the Company markets its products through its wholly owned subsidiary Claris Lifesciences Inc. The Company now has 11 ANDAs approved in its name across seven molecules with a total filing of 31 ANDAs across 22 molecules and a pipeline of 20 ANDA to be filled. The funds allocated for future growth will be invested keeping in mind the following business decisions:
- Claris to remain focused on its specialty generic injectables business.
- Company shall intensify its growth in all international markets, especially the regulated markets (including US) through new product launches.
- Company to continue to increase its focus on bag products and other niche ‘difficult to manufacture’ products.
- Company to work on fast track growth opportunities via organic (capacity expansion and introduction of new delivery systems) and organic (acquire products and ANDAs) routes.