Indian pharma major to acquire two US firms, deal worth $550 mn

While acquisition of InvaGen, a skilled R&D organization, offers a large capacity manufacturing base in New York, Exelan provides Cipla with an access to the US' government and institutional market

The Dollar Business Bureau

Cipla EU, the UK arm of the Mumba-based Cipla Ltd., has entered into definitive agreements to acquire two US-based firms— InvaGen Pharmaceuticals Inc and Exelan Pharmaceuticals Inc. The deal which is subject to certain closing conditions is valued at $550 million. This acquisition, which is being seen as the second landmark acquisition in Cipla’s history, will give the company scale in the US generics market through a wide range of product portfolio in CNS, CVS, anti-infectives, diabetes as well as other value added generic drugs, , the company said in a statement on Friday. While acquisition of InvaGen, a skilled R&D organization, offers a large capacity manufacturing base in Hauppauge, New York, Exelan provides Cipla with an access to the government and institutional market in the US. Besides, Invagen 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 4 years. InvaGen has also filed five first-to-file products representing a market size of approximately $8 billion in revenue by 2018, the Indian major said. “This investment is in line with Cipla’s strategy to grow its 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 & Global CEO, Cipla Limited. Sudhakar Vidiyala, president and CEO, InvaGen Pharmaceuticals Inc, said, “This is an exciting opportunity for InvaGen to join with Cipla.  InvaGen brings an experienced team and good manufacturing capabilities to the partnership.” He exuded confidence that the combination 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. Another India-based multinational company Glenmark Pharmaceuticals has got approval from the US Food & Drug Administration (USFDA) for its Voriconazole Tablets, 50 mg and 200 mg, the therapeutic equivalent of Vfend® Tablets, 50 mg and 200 mg of PF Prism C.V. (Prism). Glenmark’s current portfolio consists of 102 products authorized for distribution in the US marketplace and 63 ANDAs pending for approval with the USFDA.  

September 04, 2015 | 3:24pm IST.

The Dollar Business Bureau - Sep 04, 2015 12:00 IST
 
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