Indian drugmaker Sun Pharmaceutical Industries Ltd. plans to buy dermatology company Dusa Pharmaceuticals Inc. in a cash deal worth about $230 million.
Sun said Thursday it will pay $8 for each share of Dusa, a 38 percent premium on the Wilmington, Mass., company's closing price Wednesday of $5.78.
The price of Dusa shares rose $2.20, or 38 percent, to $7.98 in Thursday morning trading, nearly matching Sun's offer.
Dusa's Levulan therapy uses light to treat skin disorders. Its products include the BLU-U treatment for moderate acne.
The boards of directors for both companies have approved the deal, and Dusa's board has recommended that shareholders take the offer.