Indian generic drugmaker Cipla on Friday informed the Bombay Stock Exchange that its UK arm, Cipla EU has entered into definitive agreements to acquire two US-based companies, InvaGen Pharmaceuticals Inc and Exelan Pharmaceuticals Inc for $550 million in an all cash transaction.
This acquisition, which is the second landmark acquisition in Cipla’s 80 years of history, will give the company scale in the US generics market through a wide range of product portfolio in CNS, CVS, anti-infectives, diabetes as well as other value added generics, the company statement said.
InvaGen offers a large capacity manufacturing base in Hauppauge, NY and a skilled US-based R&D organisation, Cipla’s first such presence in the US.
The deal follows Lupin’s planned $880 million acquisition of US generics firm Gavis, as Indian drugmakers seek to strengthen their presence in the key US market.
“This investment is in line with Cipla’s strategy to grow Cipla’s share in the US pharmaceutical market. We see InvaGen as a strong strategic fit with a relevant diverse portfolio as well as a strong market and customer presence. With a local manufacturing facility, Cipla can further strengthen its presence and commitment to serve patients in the country,” Subhanu Saxena, MD & Global CEO, Cipla said.
The acquisition of InvaGen pharmaceuticals also provides Cipla with about 40 approved ANDAs, 32 marketed products, and 30 pipeline products which are expected to be approved over the next 4 years.
The acquisition of Exelan Pharmaceuticals provides Cipla access to the government and institutional market in the US through Exelan’s deep expertise, engagement and experienced management team in the business.
The transactions are likely to be concluded by December 2015, subject to regulatory clearances, the company said.