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Posted on Dec 07, 09:05PM | IBNS
Claris Lifesciences Limited, India, one of the largest sterile injectables pharmaceutical companies, on Friday announced it has executed agreements for a Joint Venture (JV) (Claris-Otsuka) with Otsuka Pharmaceutical Factory, Inc., Japan (OPF) and Mitsui and Co. Ltd., Japan (Mitsui) for its infusion business in India and emerging markets.
This joint venture will include the Common Solutions, Anti-Infectives, Plasma Volume Expanders and Parenteral Nutrition therapies of Claris for India and the Emerging Markets.
Claris will transfer the above mentioned business to Claris-Otsuka and shareholding of Claris-Otsuka will be Claris 20pc , OPF 60pc and Mitsui 20pc .
Two out of the five plants to be transferred to Claris-Otsuka.
Business is valued at Rs. 1,313 Crores and Claris to receive total cash consideration of Rs. 1050 Crores over multiple agreements.
Claris-Otsuka shall co-brand its products in India and across Emerging Markets utilizing the manufacturing and marketing competence of Claris.
Claris-Otsuka to introduce OPF's specialty products in India and Emerging Markets
OPF to have an opportunity to leverage Claris-Otsuka's manufacturing infrastructure and supply chain for its global business.
Claris-Otsuka to work on expanding product basket with speciality Infusion and Clinical Nutrition Products.
These businesses have accounted for approximately 55pc of the Claris business.
Arjun Handa to be Chairman and Claris to appoint the CEO of Claris-Otsuka.
Commenting on the deal, Handa, MD and CEO of Claris, said: "The infusions business is growing very well in India and the emerging markets, this business needs a broad product portfolio and a commitment towards long term capital investments in addition to technical and global expertise, which are clearly achieved by Otsuka and Mitsui's entry... it is my belief that this partnership synergizes the strength of all three partners."
Ichiro Otsuka, President of OPF, said: "We are pleased to have entered into a partnership with Claris and Mitsui for the full fledge entry into the IV solution/clinical nutrition business in India."
Satoshi Tanaka, Managing Officer and COO of Mitsui, said: "Mitsui aims to strengthen its relationships with Claris and Otsuka, which it regards as important partners.
"It will make India, which is achieving rapid economic growth, the platform for its efforts to meet the expanding demand for infusion products in other emerging countries."