Claris Lifesciences executed joint venture (JV) agreements with Japan-based pharmaceutical company Otsuka Pharmaceutical Factory (OPF) and Mitsui & Co for its infusion business in India and emerging markets, subject to shareholders’ and regulatory approvals and other closing formalities.
Arjun Handa to be Chairman and Claris to appoint the CEO of Claris-Otsuka.
OPF’s global expertise in the infusions business and Claris’ India advantage to be a huge advantage to Claris-Otsuka. The Claris-Otsuka business shall be propelled to take advantage of the infusions opportunity globally with OPF’s and Mitsui’s capabilities and financial strengths.
Commenting on the deal, Arjun Handa, MD and CEO said, “We welcome Otsuka and Mitsui to India and to our infusions business. We are very happy with this partnership as both Otsuka; with its global expertise in the Infusions business and their speciality products; and Mitsui; with its global trading and financial expertise; will add significant value to the JV.”
He continued further, “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 synergises the strength of all three partners. This partnership enables Claris to focus and intensify its efforts to build out its speciality injectables business globally. Globally injectable products are in shortage as pure-play injectables companies are a rarity. The company has always had a niche positioning within the injectables domain and this transaction will help us to further build on this advantage by intensifying our new product development pipeline with several large and complex injectable products.”
Ichiro Otsuka, President, OPF said, “We are pleased to have entered into a partnership with Claris and Mitsui for the full-fledged entry into the IV solution/clinical nutrition business in India. Claris is a leading infusion business company in India with the highest quality standards that is actively pursuing the development of new and innovative products. Mitsui, on the other hand, has a long history on conducting business in India. Mitsui, with its comprehensive expertise, will contribute to the smooth operation of the new company from a business and financial standpoint. Otsuka, based on its experience from developing business in Japan and other Asian nations, is committed to being the best partner of both patients and healthcare professionals in the field of clinical nutrition, and together with Claris and Mitsui will contribute to the betterment of medical care in India.”
Satoshi Tanaka, Managing Officer and COO of Mitsui said, “The medical and healthcare field is a key area of business for Mitsui. Mitsui’s medium-term management plan calls for efforts to reinforce initiatives in emerging countries in anticipation of expanding demand for pharma products, and the BRICs have been identified as priority markets. 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.”
Barclays was the sole advisor for Claris. Jaideep Khanna, Managing Director, Head of Corporate and Investment Banking at Barclays commented on the deal. “Claris is one of the biggest brands for infusions in India and we are happy to have been associated with Claris as their advisors on this transaction. Claris’ platform in India provides Otsuka with a strong entry vehicle into one of the fastest growing pharma markets globally. This transaction immediately unlocks value for Claris and its shareholders and also sets the platform for sustainable long term growth for Claris.”
EP News Bureau – Mumbai
