Cipla to acquire generic businesses in US for $550 million

Mumbai: Mumbai-based Cipla Ltd on Friday announced that its UK arm Cipla EU will acquire two US-based companies, InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc., for $550 million.

The combined revenue from these transactions is over $200 million for the year ended December 2014 and over $225 million in the 12 months to June 2015, Cipla said in a statement.

InvaGen offers a manufacturing base in Hauppauge, NY, and a skilled US-based R&D (research and development) organization. This is Cipla’s first such presence in the US.

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

“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,” said Subhanu Saxena, managing director and global chief executive officer, Cipla.

“Though we are among the first drug manufacturers in India, we have missed global opportunities. Compared to other large players, who earn 50-60% of their revenue from markets such as the US, Cipla earns about 8% from the US market,” Saxena told Mint in an interview in June.

Saxena also plans to double revenue from the US market to 15-20% by 2020, with an additional 20% of sales coming from Europe.

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