Sun Pharma up over 2% on deal with US-based InSite Vision

Mumbai: Sun Pharma's stock gained over 2 percent Wednesday as the company has entered into an agreement with InSite Vision to acquire the US-based eyecare firm for around USD 48 million plus related debt and other transaction costs to strengthen its branded ophthalmic portfolio in the American market.

The stock went up 2.38 percent to settle at Rs 887.35 on BSE. During the day, it gained 2.9 percent to Rs 891.85.

At NSE, shares of the drug major ended at Rs 887.20, up 2.37 percent.

One of the company's subsidiaries has offered to acquire InSite Vision, Sun Pharmaceutical Industries said in a statement.

"The transaction has a total equity value of approximately USD 48 million on a fully-diluted basis plus related debt and other transaction costs assuming all shares of InSite Vision are tendered in the offer," it added.

"The indirect wholly-owned arm of Sun Pharma will commence a tender offer for all the issued and outstanding common stocks of InSite Vision at USD 0.35 per share in cash, a 30 percent premium to the implied price," Sun Pharma said.

The deal gives Sun Pharma access to four late stage branded ophthalmic products in the US.