Sun Pharmaceutical has acquired InSite Vision, a US-based specialty ophthalmic product maker, in a $48 million (about Rs 320 crore) deal. The acquisition will enable Sun Pharma, India‘s largest drug maker by revenue, to grow its US business. The US sales make up for about half of its consolidated revenue.

Sun Pharma said it was developing branded ophthalmic business in the US and acquisition of InSite Vision and in-licencing of Xelpros eye drops were steps in that direction.

For the six-month period ended June 30, InSite Vision reported revenue of $3.8 million, Ebitda loss of $6.4 million and a net loss of $7.5 million. InSite Vision’s core competence is research and product development, and has research facilities in California. However, the company has been facing fund shortages, sources said.

Kal Sundaram, chief executive 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 the US.”

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 US FDA approval for ophthalmic products.” The company has two branded eye drops, which are marked by other companies.

The size of ophthalmic product business is about $7 billion and top five companies in the space control over 95 per cent market share.