Ahmedabad: Ahmedabad-based Claris Lifesciences Ltd, entered into Joint Venture agreement with two Japan-based drug makers Otsuka Pharmaceutical and Mitsui & Co Ltd for its injectable business in India and Emerging Markets.
The business is valued at Rs. 1,313 Crores and Claris to receive total cash consideration of Rs. 1050 Crores over multiple agreements. As per the deal, Claris will transfer Common Solutions, Anti-Infectives, Plasma Volume Expanders and Parenteral Nutrition therapies business for India and the emerging markets to new joint venture Claris-Otsuka. The shareholding of Claris-Otsuka will be Claris 20%, Otsuka Pharma 60% and Mitsui 20%. Claris will transfer two out of the five plants to its new Joint Venture company, Claris-Otsuka.
The JV will be subject to Board and Shareholders' approval. Claris plans to utilize the cash to fuel its existing business growth, deleveraging, and reward shareholders. Barclays was the sole advisor for Claris. The new joint venture will work on expanding product basket with speciality Infusion and Clinical Nutrition Products.
Current managing director of Claris Lifesciences, Mr Arjun Handa to be Chairman of the new joint venture and later Claris to appoint the CEO of Claris-Otsuka. In a press statement, Claris's managing director Arjun Handa said "This partnership as both Otsuka; with its global expertise in the Infusions business and their speciality products; and Mitsui; with its global trading and financial expertise; will add significant value to the Joint Venture."
According to the company the infusions business is growing very well in India and the emerging markets, this business needs a broad product portfolio and a commitment towards long term capital investments in addition to technical and global expertise.
Ichiro Otsuka, President of Otsuka Pharma said: "We are pleased to have entered into a partnership with Claris and Mitsui for the full fledge entry into the IV solution/clinical nutrition business in India." He further added that Mitsui has a long history on conducting business in India that will contribute in smooth operation of the new joint venture.
Claris believes that this partnership will enable it to focus and intensify its efforts to build out its speciality injectables business globally. Claris-Otsuka shall co-brand its products in India and across Emerging Markets utilizing the manufacturing and marketing competence of Claris. The new joint venture will introduce Otsuka Pharma's specialty products in India and Emerging Markets. Otsuka Pharma will leverage Claris-Otsuka's manufacturing infrastructure and supply chain for its global business.
As per press statement, Claris claims that its growth plans strategy will be to remain focused on its speciality generic injectables business. Company shall intensify its growth in all international markets, especially the regulated markets of USA and EU via 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 and inorganic routes.
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