Lupin on Thursday announced that it has agreed to acquire New Jersey-based GAVIS Pharma and Novel Labs for $880 million.
Lupin on Thursday announced that it has agreed to acquire New Jersey-based Gavis Pharma and Novel Labs for $880 million. This will help the company increase its presence in the world’s largest pharma market.
Here are the 5 key points about the deal
1. Lupin acquiring privately held Gavis would give it access to 66 generic drugs for which the New Jersey firm has sought approval, representing a potential market value of $9 billion.
2. Gavis Pharma was promoted by Veerappan Subramanian, a person of Indian origin and based in the US. In May 2013, Gavis had acquired around 40 per cent stake in Bengaluru’s Wintac Ltd.
3. The acquisition enhances Lupin’s scale in the US generic market and also broadens Lupin’s pipeline in dermatology, controlled substance products and other high-value and niche generics.
4. Gavis brings a highly skilled US-based R & D organisation which would complement Lupin’s Coral Springs, Florida, inhalation R&D centre. Gavis’s New Jersey based manufacturing facility will become Lupin’s first manufacturing site in the US
5. Gavis is a privately held company specialising in formulation development, manufacturing, packaging, sales, marketing, and distribution of pharmaceuticals products.
At 9.59 am on Friday, Lupin shares were down 1.23 per cent on BSE. On NSE, shares are up 0.39 per cent.