InSite Vision jilts QLT, signing up for acquisition by India's Sun Pharma

InSite Vision (OTCBB: INSV) and a subsidiary of India’s Sun Pharmaceutical Industries (SUN: BO) have entered into a merger agreement, revealing for the first time the name of the unnamed suitor that has been vying for ownership of the company with Canadian firm QLT (QLT: TSX).

Under the terms of the agreed deal, Sun Pharma, India’s largest drugmaker with a market capitalization of $32 billion, will acquire InSite in an all-cash transaction for $0.35 per share, or around $48 million in aggregate equity value, on a fully diluted basis. The transaction has been approved by the boards of directors of both InSite and the Sun Pharma subsidiary, and will be completed by means of a tender offer, and is expected to close in the fourth quarter of 2015. Sun Pharma’s shares gained 2.1% to 884.75 on the Bombay stock Exchange today, while InSite stock rose 4.4% to $0.35 in New York on Tuesday.

“The merger agreement with Sun Pharma provides a significant improvement in value for our stockholders,” said Timothy Ruane, InSite Vision's chief executive.