PE-backed Claris exits division to US strategic
Claris Lifesciences, an Indian drug maker with several PE backers, has agreed to exit its injectables division to US-based generic pharmaceutical developer Baxter International.
Baxter will pay $625 million for Claris Injectables, according to a filing. The acquisition has already been approved by both companies, and is expected to close in the second half of 2017. Regulatory approval is still required.
Claris Injectables will provide Baxter with a portfolio of 11 generic medications already approved in the US, along with a robust product pipeline and a fully integrated research and development system. Through the combination of Claris Injectables' expertise and its own resources and investment potential, Baxter expects to launch up to nine new products per year for the next few years and up to 15 per year after 2019.
Claris Injectables sells its products in more than 75 markets worldwide, with direct sales in the US and India. Global revenue for the unit is expected to exceed $100 million for the year 2016.
The acquisition is also intended to gain Baxter access to generic medications for renal therapy applications, an area of the market to which it currently has little exposure. It will also expand the company's presence in the analgesics, anti-infectives and critical care sectors.
"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 organization's R&D, manufacturing and people capabilities," said Arjun Handa, executive vice chairman of Claris Lifesciences. "I strongly believe that this weaves forward a promising pathway for our patients, team members, partners and stakeholders."
Claris Lifesciences, founded in 1999, counts OrbiMed Advisors, Reliance Capital and HBM Healthcare Investments among its investors. According to the company's most recent annual report, the firms held stakes of 4.5%, 1.2% and 0.9% respectively, as of March 2016. Previous backers include The Carlyle Group, which committed $20 million for an undisclosed stake in 2006. Carlyle partially exited in Claris' 2010 IPO and has since sold off the remainder of its stake.
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