Cipla arm acquires US-based Avenue Therapeutics

InvaGen Pharmaceuticals, a subsidiary of pharma major Cipla, is set to acquire Avenue Therapeutics, a NASDAQ listed pharmaceutical company. The shares of Cipla, however, were trading marginally down at 0.54 per cent in the morning trading session. 

InvaGen will complete the acquisition in two stages. The first stage is to acquire shares which would represent 33.3 per cent stake in Avenue Therapeutics on a fully diluted basis for 35 million dollars. In the second stage, InvaGen or its affiliates will acquire the remaining shares of Avenue’s common stock for up to $180 million. This is currently expected to represent approximately U$13.92 per share. 

Avenue is a biotech pharma focused on the development and commercialization of intravenous (IV) Tramadol for the management of moderate to moderately severe post-operative pain. 

Cipla Limited strategic business units include Active Pharmaceutical Ingredients (APIs), Respiratory and Cipla Global Access. The Company manufactures metered dose inhalers, dry powder inhalers, nasal sprays, nebulizers and a range of inhaled accessory devices. The Company offers its products for therapeutic areas, including cardiovascular, children's health, dermatology and cosmetology, diabetes, HIV/AIDS, infectious diseases and critical care etc. 

On Tuesday, the shares of the company opened at Rs. 533.90 per share against Monday’s close of Rs. 531 on the BSE. At 11:07 hours, the share was trading at Rs.529.45 down by 0.46 per cent. The intraday high was Rs. 535 and intraday low was Rs. 526.70 per share on the BSE. Its 52-week high was Rs. 678 and 52-week low was Rs. 508.10 per share on the BSE. Meanwhile, BSE Sensex was at 34,740.37 level, down 0.21 per cent.