Claris Lifesciences (CLAR IN – INR 315 – BSE)
UPDATE: Major Deal Milestone Crossed
In April 2016, the Indian Government reversed an earlier ban on (foreign investment) FDI in brownfield Pharma companies by allowing FDI, though only after obtaining an ‘FIPB’ approval. In July 2016, Fosun China announced a deal to acquire Gland Pharma (a privately held injectable’s manufacturer). FIPB approval for this deal was continuously deferred until it was finally approved on March 29, 2017. Obtaining an FIPB approval for Gland Pharma took longer than expected, as this was the first deal seeking an FIPB approval in the pharmaceutical sector after the relaxed FDI norms were announced. We believe any uncertainty about whether CLAR and BAX will be able to obtain an FIPB approval has been significantly dispelled. (Also see Timeline and Risk sections).
Sale of Injectables Segment:
On December 15, 2016, CLAR announced that they will sell their injectable’s segment for USD 625 million (~INR 42.4 billion; INR/USD: 67.82) to Baxter International Inc. (BAX US). The deal implied a forward EV/EBITDA multiple of 19.8x.
UPDATE: Major Deal Milestone Crossed
In April 2016, the Indian Government reversed an earlier ban on (foreign investment) FDI in brownfield Pharma companies by allowing FDI, though only after obtaining an ‘FIPB’ approval. In July 2016, Fosun China announced a deal to acquire Gland Pharma (a privately held injectable’s manufacturer). FIPB approval for this deal was continuously deferred until it was finally approved on March 29, 2017. Obtaining an FIPB approval for Gland Pharma took longer than expected, as this was the first deal seeking an FIPB approval in the pharmaceutical sector after the relaxed FDI norms were announced. We believe any uncertainty about whether CLAR and BAX will be able to obtain an FIPB approval has been significantly dispelled. (Also see Timeline and Risk sections).
Sale of Injectables Segment:
On December 15, 2016, CLAR announced that they will sell their injectable’s segment for USD 625 million (~INR 42.4 billion; INR/USD: 67.82) to Baxter International Inc. (BAX US). The deal implied a forward EV/EBITDA multiple of 19.8x.