Drug major Cipla on Wednesday said its subsidiary InvaGen Pharmaceuticals will continue to hold shares in US-based Avenue Therapeutics despite termination of the stock purchase and merger agreement 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.
The Mumbai-based drugmaker at that time had stated that it intends to acquire Avenue Therapeutics, a Fortress Biotech company, in two stages.
In November last year, the drug maker, however, announced that InvaGen has received a notice from Avenue for termination of the acquisition deal they inked in 2018.
The stock purchase and merger agreement (SPMA) entered between InvaGen and Avenue has been terminated with effect from November 1, 2021, Cipla said in a regulatory filing.
"However, the stockholders agreement November 12, 2018 between InvaGen, Avenue and other stockholders remains in force; and InvaGen will continue to hold shares in Avenue," it added.
Avenue Therapeutics is focused on development and commercialisation of intravenous (IV), Tramadol, a painkiller.
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