Sun Pharmaceutical Industries' one of subsidiary has entered into an agreement to acquire InSite Vision Inc. for a total consideration of US$ 48 million. InSite Vision focuses on developing new specialty ophthalmic products, including three late stage programs. The acquisition is expected to close in the fourth quarter of 2015. Sun Phama's wholly owned subsidiary will commence a tender offer for all of the issued and outstanding common stock of InSite Vision at a price of US$ 0.35 per share in cash. The transaction has a total equity value of approximately US$ 48 million on fully diluted basis plus related debt and other transaction costs assuming all shares of InSite Vision are tendered in the offer. The transaction has been approved by the board of directors of the Sun Pharma subsidiary. InSite Vision’s board of directors has also approved the transaction and unanimously recommended that its stockholders tender their shares pursuant to the tender offer. Sun Pharma is in the process of establishing a branded ophthalmic business in the US. This proposed acquisition of InSite Vision, coupled with the recent in-licensing of Xelpros (Latanoprost BAK-free eye drops) in June 2015, are steps in this direction. These deals give Sun Pharma access to four late stage branded ophthalmic products in the US.
InSite Vision has developed the DuraSite and DuraSite2 drug delivery platforms which are capable of extending the duration of drug retention, thus resulting in lower dosing frequency, and potentially enhanced efficacy. Based on this technology, InSite Vision has developed a pipeline of late-stage clinical candidates, and has recently filed a New Drug Application (NDA) with the US FDA for BromSite (0.075% bromfenac) for the treatment of inflammation and prevention of pain associated with cataract surgery. It plans to file another NDA in 2017 for DexaSite (0.1% dexamethasone) for the treatment of non-bacterial blepharitis, a common ocular condition for which there is no approved product currently available. It’s AzaSite Plus is currently in phase-3 clinical development for the treatment of eye infections, and ISV-101 is in phase 1/2 clinical development for dry-eye disease and inflammation.
InSite Vision also has two commercialized products based on its innovative DuraSite platform approved for the treatment of bacterial eye infections, AzaSite(azithromycin ophthalmic solution) 1%, and Besivance (besifloxacin ophthalmic suspension) 0.6%, marketed by respective partners.
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.”
Kal Sundaram, CEO of Sun Pharma’s North American Business said “This potential acquisition is a part of our overall objective of transitioning to a specialty company. Besides Dermatology, we have identified Ophthalmics as one of the key segments for establishing our branded presence in the US.”
For the 6 month period ended June 30, 2015, InSite Vision recorded revenues of US$ 3.8 million, an EBITDA loss of US$ 6.4 million and a net loss of US$ 7.5 million.
The acquisition is subject to InSite Vision’s stockholders tendering at least a majority of InSite Vision’s outstanding shares (determined on a fully diluted basis), or, alternatively, InSite Vision stockholders representing a majority of the outstanding shares of InSite Vision’s common stock voting to approve the transaction as required by applicable law, in addition to other customary closing conditions.