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Sun Pharmaceutical Industries., late Tuesday said its US-based subsidiary to buy and merger InSite Vision Inc., as part of its plans to focus on speciality products and deepen its presence in the North American market.

InSite Vision focuses on developing new specialty ophthalmic products, including three late stage programmes. Sun Pharma is in the process of establishing a branded ophthalmic business in the US.

The current deal adds to another transaction in June when Sun Pharma entered into a in-licensing agreement of Xelpros, the company said in a statement. These deals give Sun Pharma access to four late stage branded ophthalmic products in the US, it added.

“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,” said Kal Sundaram, CEO of Sun Pharma’s North American Business.

For the 6 month period ended June 30, 2015, InSite Vision had revenues of $ 3.8 million, an EBITDA loss of $ 6.4 million and a net loss of $ 7.5 million.

As per the agreement, an indirect wholly owned subsidiary of Sun Pharma will commence a tender offer for all of the issued and outstanding common stock of InSite Vision at a price of $0.35 per share in cash, a 30% premium to the implied price per share, as mentioned in another terminated agreement between InSite Vision and a competing bidder for InSite Vision’s common stock based on the stock price of the competing bidder as of September 11, 2015, the statement said.

The transaction has a total equity value of approximately $48 million on fully diluted basis plus related debt and other transaction costs assuming all shares of InSite Vision are tendered in the offer,it said.

The transaction has been approved by the board of directors of both Sun Pharma subsidiary, and InSite Vision, it said.

Sun Pharma shares were trading 2.16 per cent higher at Rs 885.40 at 10.24 am on BSE.