By Saabira Chaudhuri
Sun Pharmaceutical Industries Ltd. (524715.BY, SPCEF) has agreed to buy U.S. dermatology company Dusa Pharmaceuticals Inc. (DUSA) for about $215 million in cash as the India-based company looks to make a foray into the lucrative market for dermatological treatments.
Sun Pharmaceutical will commence a tender offer for Dusa's shares at a per-share price of $8 in cash, a 38% premium to Dusa's Wednesday closing price.
"Dusa has proven technical capabilities in photodynamic skin treatments, with USFDA approved manufacturing," Sun Pharmaceuticals Managing Director Dilip Shanghvi said. "Dusa's business brings us an entry into dermatological treatment devices, where we see good growth opportunities."
The deal has been unanimously approved by the boards of both companies and Dusa's board has recommended that the company's shareholders tender their shares.
Dusa focuses on developing and marketing its Levulan combination therapy, which is approved by the U.S. Food and Drug Administration for the treatment of non-hyperkeratotic actinic keratoses of the face or scalp. Additionally, DUSA's BLU-U treatment has been approved by the FDA for the treatment of moderate inflammatory acne vulgaris and general dermatological conditions.
Sun Pharmaceutical makes and markets branded generics, as well as generics, in India, the U.S. and several other markets across the world. In India, the company is focused on niche therapy areas of psychiatry, neurology, cardiology, diabetology, gastroenterology, orthopedics and ophthalmology.
Dusa had about 26.9 million shares outstanding and $9.35 million in total liabilies as of June 30.
Shares of Dusa closed Wednesday at $5.78 and were inactive in recent premarket trading. The stock has risen 34% in the past 12 months.
Write to Saabira Chaudhuri at [email protected]
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