Drug major Cipla said its subsidiary InvaGen Pharmaceuticals Inc has completed the first tranche of its acquisition of 33.3 percent stake in US-based speciality business firm Avenue Therapeutics.
In November last year, the company had said it intends to acquire Avenue Therapeutics, a Fortress Biotech company, for up to USD 215 million (around Rs 1,560 crore) in two stages.
Cipla had also said the first tranche of 33.3 percent stake will be acquired for USD 35 million, while the remaining stake in the second stage for up to USD 180 million.
In a BSE filing, Cipla said its wholly-owned subsidiary InvaGen Pharmaceuticals has “completed the first stage closing of the Avenue Therapeutics Inc, transaction representing an acquisition of 33.3 per cent stake in Avenue’s capital stock on fully diluted basis on 8th February 2019.”
Cipla had also said the second stage closing will be subject to the certain conditions, including those related to USFDA approval and the absence of any Risk Evaluation and Mitigation Strategy (REMS) or similar restrictions with respect to IV Tramadol.
“Our investment in and proposed acquisition of Avenue establishes our presence in the specialty institutional business in the US… This investment is in keeping with our stated intention to build a specialty pipeline in the US market,” Cipla MD & Global Chief Executive Officer Umang Vohra had said after signing the definitive agreements to acquire the company.