By Saabira Chaudhuri
Sun Pharmaceutical Industries Ltd. (524715.BY, SPCEF) has agreed
to buy U.S. dermatology company Dusa Pharmaceuticals Inc. (DUSA)
for about $215 million in cash as the India-based company looks to
make a foray into the lucrative market for dermatological
treatments.
Sun Pharmaceutical will commence a tender offer for Dusa's
shares at a per-share price of $8 in cash, a 38% premium to Dusa's
Wednesday closing price.
"Dusa has proven technical capabilities in photodynamic skin
treatments, with USFDA approved manufacturing," Sun Pharmaceuticals
Managing Director Dilip Shanghvi said. "Dusa's business brings us
an entry into dermatological treatment devices, where we see good
growth opportunities."
The deal has been unanimously approved by the boards of both
companies and Dusa's board has recommended that the company's
shareholders tender their shares.
Dusa focuses on developing and marketing its Levulan combination
therapy, which is approved by the U.S. Food and Drug Administration
for the treatment of non-hyperkeratotic actinic keratoses of the
face or scalp. Additionally, DUSA's BLU-U treatment has been
approved by the FDA for the treatment of moderate inflammatory acne
vulgaris and general dermatological conditions.
Sun Pharmaceutical makes and markets branded generics, as well
as generics, in India, the U.S. and several other markets across
the world. In India, the company is focused on niche therapy areas
of psychiatry, neurology, cardiology, diabetology,
gastroenterology, orthopedics and ophthalmology.
Dusa had about 26.9 million shares outstanding and $9.35 million
in total liabilies as of June 30.
Shares of Dusa closed Wednesday at $5.78 and were inactive in
recent premarket trading. The stock has risen 34% in the past 12
months.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com
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