Commenting on the deal, Jerry St. Peter, Vice President & Head of Sun Pharma's US Ophthalmic Business, said, "The potential addition of the InSite Vision portfolio serves as a significant step towards enhancing our branded specialty pipeline in the Ophthalmic segment. InSite Vision will bring with it a pipeline of three late-stage clinical candidates, validated drug delivery technology and a track record of achieving US FDA approval for ophthalmic products."
For the six months ended June 30, 2015, InSite Vision recorded revenue of $3.8 million and an Ebitda loss of $6.4 million. Its net loss for the six months was $7.5million.
Under the terms of the merger, the US subsidiary of Sun Pharma will make a tender offer for all of the issued and outstanding common stock of InSite Vision at a price of $0.35 per share, which is a 30 per cent premium to the price offered by a competing bidder as of September 11, 2015.
The transaction is subject to InSite Vision's stockholders tendering a majority of its outstanding shares under the Sun Pharma offer.
Sun Pharma shares closed 2.38 per cent higher at Rs 887.20 apiece, compared to 0.89 per cent gain in the broader Nifty.