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Mumbai-based Cipla agreed to acquire US companies InvaGen and Exelan, giving Cipla US tablet and capsule production capacity, a more diversified portfolio, and market access.
Cipla EU, the UK arm of Mumbai-based Cipla, has entered into definitive agreements to acquire two US-based companies, InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc., the company announced in a Sept. 4, 2015 press release. The all-cash transaction, subject to certain closing conditions, is valued at $550 million. This acquisition will give the company scale in the US generics market through a wide ranging product portfolio in central nervous system, anti-infectives, diabetes, and other value-added generic drugs. InvaGen offers a large capacity manufacturing base in Hauppauge, NY and a skilled US-based R&D organization, which will be Cipla’s first such presence in the US.
The acquisition of InvaGen pharmaceuticals also provides Cipla with approximately 40 approved abbreviated new drug applications, 32 marketed products, and 30 pipeline products that are expected to be approved in the next four years. They represent a balanced, diversified, and growing portfolio. In addition, InvaGen has filed five first-to-file products, which represent a market size of approximately $8 billion in revenue by 2018. Dosage forms include immediate release, modified release, and extended release tablets and capsules. With a manufacturing footprint of approximately 350,000-ft2 GMP space, InvaGen has three units located in Long Island, NY, with a total production capacity of 12 billion tablets and capsules per annum. This acquisition further provides Cipla with an access to large wholesalers/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.
“This investment is in line with Cipla’s strategy to grow Cipla’s share in the US pharmaceutical market,” said Subhanu Saxena, global CEO, Cipla Limited, in the press release. “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.”