Claris Lifesciences Shares Spike Before PlungingBy
Claris Lifesciences Ltd., an Indian maker of injectable drugs, spiked up in the final hour of trading only to close with the biggest decline in 20 months as investors digested prospects of a smaller-than-expected payout from the sale of the company’s specialty business.
The stock rose as much as 17.4 percent after Claris said it was evaluating options including dividend and buyback of shares to return cash. A line in the same filing that 15.37 billion rupees ($236 million) of expenses relating to the sale, including incentives to staff and executives, will leave the company with net cash of 20.77 billion rupees triggered a slump of as much 14 percent. The loss narrowed to 7.5 percent at the close.
“Investors need clarity as the amount to be expensed post-deal is too high,” Abhimanyu Sofat, vice president at India Infoline Ltd., said by phone.
Claris in July sold its global generic injectable-drug business to Baxter International Inc. for an enterprise value of $625 million.
— With assistance by Santanu Chakraborty