Cipla unit gets notice from US firm for termination of acquisition deal
In November 2018, Cipla had announced that InvaGen Pharmaceuticals Inc has entered into definitive agreements to acquire US-based speciality business firm Avenue Therapeutics
 "Cipla, Cipla logo, Cipla headquarters")
An employee works at the reception area of Cipla at its headquarters in Mumbai. Photo: Reuters
Drug major Cipla on Wednesday said its subsidiary InvaGen Pharmaceuticals has received a notice from US-based Avenue Therapeutics for termination of the acquisition deal they inked in 2018.
In November 2018, Cipla had announced that InvaGen Pharmaceuticals Inc has entered into definitive agreements to acquire US-based speciality business firm Avenue Therapeutics for up to USD 215 million (around Rs 1,560 crore).
Cipla at that time had stated that it intends to acquire Avenue Therapeutics, a Fortress Biotech company, in two stages.
Since the second stage closing could not be completed as per the agreed timelines, in the terms of the SPMA, InvaGen has received a notice of termination from Avenue, the Mumbai-based drug major said in a regulatory filing.
InvaGen is evaluating the notice for any further steps that it may be required to take in this regard, it added.
The existing shareholding of InvaGen in Avenue shall continue, Cipla stated.
Avenue Therapeutics is focused on development and commercialisation of intravenous (IV), Tramadol, a painkiller.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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First Published: Nov 03 2021 | 2:34 PM IST