Sun Pharmaceutical, an international, specialty pharmaceutical company based in India, has agreed to acquire DUSA Pharmaceuticals, a Wilmington, Mass.-based dermatology company focused on photodynamic therapy.

A 100% subsidiary of Sun Pharmaceutical Industries 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 of DUSA's common stock on November 7, 2012. The transaction has a total cash value of approximately $230 million. The transaction has been unanimously approved by the boards of directors of both companies and DUSA's board has recommended that the company's shareholders tender their shares pursuant to the tender offer. 

"DUSA has proven technical capabilities in photodynamic skin treatments, with U.S. FDA approved manufacturing,” said Dilip Shanghvi, managing director, Sun Pharmaceutical. “DUSA's business brings us an entry into dermatological treatment devices, where we see good growth opportunities."

DUSA's Levulan combination therapy is approved by FDA for treatment of non-hyperkeratotic actinic keratoses (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.

"We believe this transaction brings significant value to DUSA shareholders and are pleased that Sun Pharma recognized the value that has been created. The entire team at DUSA has built an excellent franchise around Levulan PDT and continues to grow its presence in the dermatology space,” said Robert Doman, president and CEO, DUSA Pharmaceuticals. “We are confident that Sun Pharma will build upon the solid foundation our organization has established in the United States dermatology market to further expand access to Levulan for patients with actinic kerotoses.”

The closing of the tender offer will be subject to certain conditions. Upon the completion of the tender offer, Sun Pharma will acquire all remaining shares at the same price of $8.00 per share through a second-step merger, subject to approvals as may be necessary.