AsianScientist (Sep. 14, 2015) – Cipla EU, the UK arm of India-headquartered pharmaceutical Cipla, has entered into definitive agreements to acquire two US-based companies, InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc. The transaction being subject to certain closing conditions, is valued at US$550 million and will be an all cash transaction.
The combined revenue from these transactions is over US$200 million for the year ended Dec 2014 and over US$225 million in the last twelve months up to June 2015. 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 ranging product portfolio in central nervous system (CNS), cardiovascular system (CVS), anti-infectives, diabetes as well as other value added generics.
InvaGen offers a large capacity manufacturing base in Hauppauge, New York and a skilled US-based R&D organization, Cipla’s first such presence in the US. The acquisition of InvaGen pharmaceuticals also provides Cipla with about 40 approved abbreviated new drug applications (ANDAs), 32 marketed products, and 30 pipeline products which are expected to be approved over the next four years.
In addition, InvaGen has filed five first-to-file products which represent a market size of ~US$8 billion in revenue by 2018. Dosage forms include immediate release, modified release and extended release tablets and capsules. With a manufacturing footprint of ~350,000 sq.ft of GMP area, InvaGen has three units located in Long Island, NY, with a total production capacity of 12 billion tablets and capsules per annum and about 500 employees.
This acquisition further provides Cipla with an access to large wholesalers or retailers in the US. 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.
Commenting on the acquisition, Mr. Subhanu Saxena, MD & Global CEO, Cipla Limited said, “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.”
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Source: Cipla.
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