Cipla to acquire two US pharma companies for $550 mn | business | Hindustan Times
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Cipla to acquire two US pharma companies for $550 mn

business Updated: Sep 04, 2015 13:53 IST
HT Correspondent
HT Correspondent
Hindustan Times

Cipla is a global pharmaceutical manufacturing company with a presence over 180 countries. (Image via official website)

Pharmaceutical major Cipla Ltd said on Friday its UK arm Cipla EU has entered into definitive agreements to acquire two US-based companies - InvaGen Pharmaceuticals Inc and Exelan Pharmaceuticals Inc - in an all-cash deal valued at $550 million, as it looks to scale up its generic drugs business in America.

"This acquisition, which is the second landmark acquisition in Cipla's 80 years history, will give the company scale in the US generics market through a wide range of product portfolio in CNS (central nervous system), CVS (cardio vascular), anti-infectives, diabetes as well as other value-added generics," the company said in a statement.

The combined revenue from the two acquisitions is over $200 million for the year ended December 2014 and $225 million for last twelve months to June 2015.

Through InvaGen, India's fourth-largest drugmaker by sales will also get a manufacturing base in New York and a skilled US-based research and development organisation, Cipla's first such presence in the US, it said.

InvaGen has 40 approved ANDAs (abbreviated new drug applications), 32 marketed products and 30 pipeline products, which are expected to be approved over the next four years. It has three units in Long Island, NY, with 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 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," said Subhanu Saxena, MD and global CEO of Cipla.

The acquisition of Exelan would give access to the government and institutional market in the US through that company's deep expertise, engagement and experienced management team in the business, said Cipla.

Barclays was the financial advisor to Cipla on the deal to acquire the two privately-held firms.

Cipla's shares were up 1.24% at Rs 665 on the Bombay Stock Exchange on Friday.