Sun Pharma to acquire DUSA Pharmaceuticals for $230 million

India’s Sun Pharmaceutical Industries (SUN.BO) has entered into a definitive agreement to acquire US dermatological company DUSA Pharmaceuticals (Nasdaq: DUSA), which is focused on developing and marketing its Levulan (aminolevulinic acid HCl) photodynamic therapy platform.

Under the terms of the accord, a 100% subsidiary of Sun Pharma will commence a tender offer for all of the outstanding common stock of DUSA at a price of $8.00 per share in cash, a 38% premium to the closing price on November 7, 2012. The transaction has a total cash value of about $230 million. The deal has been unanimously approved by the boards of both companies and DUSA's board has recommended that the company's shareholders tender their shares pursuant to the tender offer.

DUSA's Levulan combination therapy is approved by the US Food and Drug Administration for treatment of non-hyperkeratotic actinic keratoses or AKs of the face or scalp. Additionally, DUSA's BLU-U treatment has been approved by FDA for the treatment of moderate inflammatory acne vulgaris and general dermatological conditions. Levulan is manufactured by DUSA in its FDA-approved facility at Wilmington, Mass.