Indian drug major Cipla Ltd said Tuesday, that it has inked agreement to acquire Nasdaq-listed specialty pharmaceutical company Avenue Therapeutics Inc for upto USD 215 million or Rs 1,560 crore approx.
In a stock-exchange filing, Cipla said it will acquire Avenue Therapeutics, which was set up in 2015 and has not started generating revenue, through unit InvaGen Pharmaceuticals Inc. in two stages.
In the first stage, InvaGen or its affiliates will acquire a 33.3% stake in Avenue by buying new shares for USD 35 million. This stake is likely to consist of 5.83 million shares at USD 6 per share. In the second stage, InvaGen or its associates will acquire the remaining shares of Avenue’s common stock for up to USD 180 million for about USD 13.92 per share, Cipla said.
The first stage is likely to be completed within four months whereas the second stage is expected to be completed before April 2021.
Shares of Cipla closed at Rs. 528.10, per share, lower by 0.71 percent on BSE, while on NSE it was quoted Rs. 527.50 lower by 0.82 percent.