Cipla to acquire two US generics companies for $550m
Acquisition of InvaGen gives Cipla scale in the US generics market with a strong manufacturing and R&D base, access to a broad product portfolio and a strong customer base
Cipla has announced that its UK arm, Cipla EU, has entered into definitive agreements to acquire two US-based companies, InvaGen Pharmaceuticals and Exelan Pharmaceuticals. The all-cash transaction, subject to certain closing conditions, is valued at US$550m.
This acquisition will give the company scale in the US generics market through a wide ranging product portfolio in CNS, CVS, anti-infectives and diabetes, as well as other value added generics. InvaGen offers a large capacity manufacturing base in Hauppauge, NY, US and a skilled US-based R&D organisation, Cipla's first such presence in the US.
The acquisition of InvaGen also provides Cipla with about 40 approved ANDAs, 32 marketed products and 30 pipeline products, which are expected to be approved during the next four years. They represent a balanced, diversified and growing portfolio targeting highly attractive, large and niche markets. The acquisition of Exelan Pharmaceuticals provides Cipla with access to the government and institutional market in the US through Exelan's deep expertise, engagement and experienced management team in the business.
‘This investment is in line with our strategy to grow Cipla's share in the US pharmaceutical market,' said Subhanu Saxena, MD and Global CEO, Cipla Limited. '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.’
Dr Sudhakar Vidiyala, President and CEO, InvaGen Pharmaceuticals, commented: ‘This is an exciting opportunity for InvaGen to join with Cipla. We are confident that the combination of InvaGen and Cipla will significantly enhance the product portfolio offering, including speciality products, to US patients and will give InvaGen access to Cipla's global expertise and presence.’
