Claris transfers two businesses to Japan JV for Rs 1,050 cr

AHMEDABAD: Pharmaceuticals firm Claris Lifesciences today said it has completed transfer of two of its infusion businesses to a joint venture, formed with Japanese pharma firms, for a consideration of Rs 1,050 crore.

The city-based drugmaker last year entered into a JV agreement with two Japanese firms -- Otsuka Pharmaceutical and Mitsui & Co Ltd -- for its injectable business in India and Emerging Markets.

As per the deal, the company has transferred common solutions, anti-infective, plasma volume expanders and parenteral nutrition therapies business for India and Emerging Markets to the new JV -- Claris-Otsuka.

Claris will continue to hold a 20 per cent stake in the JV, while Otsuka and Mitsui will hold 60 and 20 per cent in it, respectively, a company statement said here.

The Indian company received Rs 1,050 crore as a part of the transaction from Claris-Otsuka. The joint venture is valued at Rs 1,313 crore.

Claris said it will use part of the cash consideration towards debt prepayment of around Rs 360 crore.

Subject to regulatory approvals, the company intends to reward shareholders via buyback of shares. It has allocated Rs 300 crore for the buyback of shares, the statement added.