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Sun Pharma to Acquire InSite Vision

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Sun Pharma has announced its one of the subsidiary entering into an agreement and plan of merger with InSite Vision Inc. (InSite Vision).

Under this agreement the subsidiary has offered to acquire InSite Vision. InSite Vision focuses on developing new specialty ophthalmic products, including three late stage programs.

Sun Pharma is in the process of establishing a branded ophthalmic business in the United States.This proposed acquisition of InSite Vision is coupled with the recent in-licensing of Xelpros (Latanoprost BAK-free eye drops) in June 2015, are the steps taken in this direction. These deals give Sun Pharma access to four late stage branded ophthalmic products in US.

Commenting on the deal, Jerry St. Peter, Vice President and 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 USFDA approval for ophthalmic products.â€

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 US.â€

InSite Vision also has two commercialised products based on its innovative DuraSite platform approved for the treatment of bacterial eye infections, AzaSite (azithromycin ophthalmic solution) one per cent, and Besivance (besifloxacin ophthalmic suspension) 0.6 per cent, marketed by respective partners.

Under the terms of the agreement and plan of merger, an indirect wholly owned subsidiary of Sun Pharma 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, a 30 per cent premium to the implied price per share under the terminated ‘Amended and Restated Agreement and Plan of Merger’ between InSite Vision and a competing bidder for InSite Vision’s common stock based on the stock price of the competing bidder as of September 11, 2015. 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.

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