Ahmedabad-based injectables player Claris Lifesciences today said that it has entered into a joint venture with Japan's Otsuka Pharmaceutical Factory Inc and Mitsui & Co Ltd for its infusion business in India and emerging markets. The business is valued at Rs 1,313 crore, and Claris would receive total cash consideration of Rs 1,050 crore over multiple agreements, the company informed to the Bombay Stock Exchange (BSE).
The JV will include the common solutions, anti-infectives, plasma volume expanders and parenteral nutrition therapies of Claris for India and the emerging markets. Historically, these businesses have accounted for around 55% of Claris' business. The company will now transfer the above mentioned business to the Claris-Otsuka JV.
Claris would hold a 20% stake in the joint venture, while Otsuka will hold 60% and the remaining 20% will be with Mitsui. Two out of five plants will be transferred to Claris-Otsuka, the company statement mentioned.
Arjun Handa, managing director and CEO of Claris will be the chairman of the Claris-Otsuka JV and will also appoint the CEO of Claris-Otsuka.
Claris-Otsuka will co-brand its products in India and across emerging markets utilising the manufacturing and marketing backup of the Claris. Also, Claris-Otsuka would work on expanding the product basket with speciality infusion and clinical nutrition products.
Handa said that Ostuka with its global expertise in infusions business and Mitsui with its global trading and financial expertise would add significant value to the joint venture.
As for Claris, the company said in a statement to the BSE, that it would remain focussed 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', the statement read. Moreover, Claris will work on growth opportunities both via the organic and inorganic route.
As Handa put it, "The partnership enables Claris to focus and intensify its efforts to build out its speciality injectables business globally. Globally, injectable products are in shortage and pure-play injectables companies are a rarity."
Claris Lifesciences shares were down 2.67% to Rs 267.50 at the BSE at 2:52 pm.
