Sun Pharma offers to buy InSite Vision

Last month, InSite Vision signed a definite agreement with Canadian drug maker QLT for $0.25 and 0.30 per share.

The deal however included a built in clause that enabled for negotiations for any higher bidder.

Now the company has terminated its discussion with QLT as the Sun Pharma’s bid is higher.

Under the latest agreement, an indirect wholly owned subsidiary of Sun Pharma will start a tender offer to acquire all outstanding shares of InSite at $0.35 per share in cash.

Upon completion of the tender offer, both firms will complete a merger in which InSite shares that were not tendered in the offer will be cancelled and converted into the right to receive $0.35 per share.

If the merger deal is cancelled, InSite will be obligated to pay the Sun Pharma subsidiary a termination fee of $2,667,000 to reimburse it for the termination fee paid to QLT.

The transaction is expected to be completed in the fourth quarter of this year.

InSite Vision CEO Timothy Ruane said: "The merger agreement with Sun Pharma provides a significant improvement in value for our stockholders."

InSite Vision is advancing new specialty ophthalmologic products to treat diseases affecting the front and back of the eye.

The company has two commercial products based on its DuraSite platform approved for the treatment of bacterial eye infections, AzaSite (azithromycin ophthalmic solution) 1%, and Besivance (besifloxacin ophthalmic suspension) 0.6%.

Image: Sun Pharma corporate office building. Photo: courtesy of Sun Pharmaceutical Industries Ltd.