Sun Pharmaceutical Industries of India is shelling out around $230 million to buy US dermatology specialist Dusa Pharmaceuticals.
Specifically, the Mumbai-based company is paying $8.00 per share in cash, a 38% premium to Dusa's closing price on November 7. It is getting access to the latter's Levulan (aminolevulinic acid), a combination therapy is approved by the US Food and Drug Administration for the treatment of non-hyperkeratotic actinic keratoses of the face or scalp. The firm also markets Blu-U, for moderate inflammatory acne vulgaris and general dermatological conditions.
Sun managing director Dilip Shanghvi said that Dusa has "proven technical capabilities in photodynamic skin treatments, with FDA-approved manufacturing". He added that the business "brings us an entry into dermatological treatment devices, where we see good growth opportunities".
Industry observers noted that the deal will complement the dermatology business of Sun's Israel-headquartered Taro Pharmaceutical Industries unit.
Sales soar, legals hurt income
Meantime, Sun has posted financials for its second quarter ended September 30 which show that sales leapt 40% to 26.57 billion rupees (about $488.8 million), with US turnover making up $244 million of the total (+38%). However, net profit was down 46.5% to 3.20 billion rupees.
The decline was a result of Sun setting aside 5.84 billion rupees towards potential damages in respect of a long-running patent infringement case brought by Nycomed (now owned by Takeda) and Wyeth (part of Pfizer) related to generic versions of the antiulcerant Protonix (pantoprazole).