In one of the biggest deals involving a domestic pharma major, US-based Baxter International Inc today entered into a definitive agreement to acquire Claris Injectables, a wholly-owned subsidiary of Claris Lifesciences, for approximately $625 million (Rs 4,237 crore).
Claris Injectables will add proven capabilities in production of essential generic injectable medicines, such as anaesthesia and analgesics, renal, anti-infectives and critical care in a variety of presentations including bags, vials and ampoules, Baxter said in statement.
The Boards of Directors of both companies have approved the proposed acquisition, which is expected to close in the second half of 2017, it added.
Baxter Chairman and Chief Executive Officer Jose Almeida said,
The Claris Injectables acquisition will expand Baxter's presence in the fast growing, global generic injectable pharmaceuticals space and accelerate our growth trajectory with high-value, essential medicines that will benefit patients worldwide.
The capabilities gained with Claris Injectables will augment and complement the company's differentiated technologies, expertise and extensive presence in the hospital channel to create a pathway for Baxter to become a global leader in generic injectables, he added.
In 2016, Claris Injectables is expected to deliver annual global revenues in excess of $100 million. Global revenues for Claris Injectables business have increased by double-digits annually over the last several years driven by new product launches and geographic expansion.
Baxter expects to finance the transaction through cash on hand, debt or a combination, the statement added.
Claris Lifesciences Ltd Executive Vice Chairman and Group Managing Director Arjun Handa said Baxter's deep and long history, roots in the hospital business, and expertise to advance the business as a strategic platform will catapult the combined organisation's R&D, manufacturing and people capabilities.