News | News By Subject | News by Disease News By Date | Search News
Get Our FREE
Industry eNewsletter

Cipla (CIPLA) Strikes $550 Million Deal to Acquire Two U.S. Drugmakers

9/4/2015 6:00:21 AM

Cipla Strikes $550 Million Deal to Acquire Two U.S. Drugmakers
September 4, 2015
By Alex Keown, Breaking News Staff

MUMBAI, India – In a move to expand its U.S. presence, Cipla Ltd. (CIPLA) struck a $550 million deal to acquire two generic pharmaceutical companies, InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc., Cipla announced this morning.

Acquiring the two U.S. firms will provide Cipla with a greater scale in the U.S. generics market, particularly in areas such as in CNS, CVS, anti-infectives, diabetes as well as other value added generics, the company said in a statement. Additionally, the deal will provide Cipla with its first physical footprint in the United States.

The acquisition of InvaGen includes three manufacturing facilities in Hauppauge, N.Y. measuring approximately 350,000 square-feet. The facilities include a total production capacity of 12 billion tablets and capsules per annum and about 500 employees.

“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, Cipla’s chief executive officer, said in a statement.

Company stock, which trades on the Mumbai Market Index was down slightly this morning, although stock did initially jump about 4 percent following the announcement of the acquisitions.
  Related Jobs  
  Sr Data Manager - Novartis Oncology
  Reliability Technician - MedImmune
  Supply Chain Manager - Aduro BioTech
  Associate Scientist - Pharmacologist - Pfizer
  Bioinformatics Engineer - GeneDx
  Global Correlative Science Leader - Novartis Oncology
  View More Jobs

This is the second major acquisition for Cipla, following the purchase of South Africa's Medpro in 2013.

The acquisition of InvaGen pharmaceuticals also provides Cipla with about 40 approved new drug applications, 32 marketed products, and 30 pipeline products which are expected to be approved over the next four years. Additionally, InvaGen filed five first-to-file products which represent a market size of under $8 billion in revenue by 2018, the company said.

The company said Invagen’s pipeline represents a “balanced, diversified and growing portfolio targeting highly attractive, large and niche markets.”

“This is an exciting opportunity for InvaGen to join with Cipla. InvaGen brings an experienced team and good manufacturing capabilities to the partnership. We are confident that the combination of InvaGen and Cipla will significantly enhance the product portfolio offering, including specialty products, to the US patients and will give InvaGen access to Cipla's global expertise and presence,” Sudhakar Vidiyala, president and CEO of InvaGen said in a statement.

The acquisition of Exelan Pharmaceuticals provides Cipla access to the government and institutional market in the U.S. through “Exelan's deep expertise, engagement and experienced management team in the business,” Cipla said.

The deal will be an all cash transaction, Cipla announced this morning. Combined revenue from the transactions is expected to be approximately $445 million by the end of the 2015 fiscal year.

Read at

comments powered by Disqus