Cipla will acquire Avenue, part of Nasdaq-listed Fortress Biotech Inc, in two stages.
Indian drugmaker Cipla Ltd, through its subsidiary InvaGen Pharmaceuticals Inc, will acquire US-based speciality pharmaceutical company Avenue Therapeutics Inc for up to $215 million.
Cipla will acquire Avenue, part of Nasdaq-listed Fortress Biotech Inc, in two stages. Avenue focuses on the development and commercialization of intravenous Tramadol to manage post-operative pain.
Cipla said, "At the first stage closing, InvaGen or its affiliates will acquire, through the issuance by Avenue of new shares, shares representing a 33.3 per cent stake in Avenue’s capital stock on a fully diluted basis for $ 35 million."
Umang Vohra, Managing Director and Global Chief Executive Officer, Cipla, said, "Our investment in and the proposed acquisition of Avenue establishes our presence in the speciality institutional business in the US. This investment is in keeping with our stated intention to build a speciality pipeline in the US market."