Cipla unit gets termination notice on Rs 1560 crore acquisition deal with Avenue Therapeutics

In November 2018, Cipla had announced that InvaGen Pharmaceuticals Inc has entered into definitive agreements to acquire US based speciality business firm Avenue Therapeutics for up to USD 215 million (around Rs 1,560 crore).

Published On 2021-11-05 12:41 GMT   |   Update On 2022-12-09 05:41 GMT
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New Delhi: Drug major Cipla on Wednesday said its subsidiary InvaGen Pharmaceuticals has received a notice from US-based Avenue Therapeutics for termination of the acquisition deal they inked in 2018.

In November 2018, Cipla had announced that InvaGen Pharmaceuticals Inc has entered into definitive agreements to acquire US-based speciality business firm Avenue Therapeutics for up to USD 215 million (around Rs 1,560 crore).

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Cipla at that time had stated that it intends to acquire Avenue Therapeutics, a Fortress Biotech company, in two stages.

"Since the second stage closing could not be completed as per the agreed timelines, in the terms of the SPMA, InvaGen has received a notice of termination from Avenue," the Mumbai-based drug major said in a regulatory filing.

Also Read: After Selling Humalog, Trulicity Rights To Cipla, Eli Lilly Sacks 120 Staff In India: Report

InvaGen is evaluating the notice for any further steps that it may be required to take in this regard, it added.

The existing shareholding of InvaGen in Avenue shall continue, Cipla stated.

Avenue Therapeutics is focused on development and commercialization of intravenous (IV), Tramadol, a painkiller.

Also Read: Cipla Eyes Acquisitions After Covid Windfall: Bloomberg

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Article Source : PTI

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