Cipla to buy 2 US companies for $550 million

NEW DELHI: Drug major Cipla has entered into agreements to acquire US-based InvaGen Pharmaceuticals and Exelan Pharmaceuticals, owned by one of the promoters of Hetero Group, in an all cash transaction of $550 million (approx Rs 3,652 crore).
The deals, through its UK arm Cipla EU, are subject to certain closing conditions, Cipla said in a statement.
This acquisition will give Cipla scale in the US generics market through a wide ranging product portfolio in CNS, CVS, anti-infectives, diabetes as well as other value-added generics, the company said.
Cipla MD and Global chief executive Subhanu Saxena said: "This investment is in line with Cipla's strategy to grow its share in the US pharmaceutical market."
The company sees InvaGen as a strong strategic fit with a relevant diverse portfolio as well as a strong market and customer presence, he said.
With a local manufacturing facility, it can further strengthen its presence and commitment to serve patients in the country, he added.
InvaGen offers a large capacity manufacturing base in Hauppauge, NY and a skilled US-based R&D organization. The acquisition of InvaGen pharmaceuticals also provides Cipla with about 40 approved ANDAs, 32 marketed products, and 30 pipeline products which are expected to be approved over the next 4 years, Cipla said.
The acquisition of Exelan provides Cipla access to government and institutional market in the US, Cipla said.
"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," InvaGen president and CEO Sudhakar Vidiyala said.