Sun Pharma gets US firm Dusa for $230mn | business | Hindustan Times
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Sun Pharma gets US firm Dusa for $230mn

business Updated: Nov 08, 2012 21:12 IST
HT Correspondent
HT Correspondent
Hindustan Times
Dilip Shanghvi

Billionaire Dilip Shanghvi made a more major move on his global corporate chessboard on Thursday when his Sun Pharma announced it would acquire US-based Nasdaq-listed Dusa Pharmaceuticals for about $230 million (Rs 1,250 crore) to gain access to a lucrative skin treatment market in the US.

The buyout adds power to Sun's acquisition of Israel Taro Pharma, which also has a skin care business.

"Dusa's business brings us an entry into dermatological treatment devices, where we see good growth opportunities," said Shanghvi, Sun Pharma's managing director and the fifth richest Indian with an estimated weath of $29 billion. "DUSA has proven technical capabilities in photodynamic skin treatments, with USFDA approved manufacturing," he said.

Dusa shareholders will get $8 per share in cash, representing a 38% premium to the closing price of Dusa's stock on Wednesday.

"This acquisition will actually complement Taro's existing business, which has a strong dermatology product range," said Siddhant Khandekar, analyst at ICICI Direct. "This was the only area, a growing one, where Sun did not have products in the US."

Sun Pharmaceutical's growth has come through number of acquisitions in the past in India and outside. In 2010, The company moved to acquire Taro to increase its market share in the US and succeeded after court wrangles in Israel. Its acquisitions include a formulation plant at Bryan, Ohio and Hungary-based IC oveseas, besides a clutch of domestic firms.