Cipla Acquires Two US Generics Companies
Cipla EU, the UK arm of Cipla, has agreed to acquire two US-based generic-drug companies, InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc. for $550 million. The combined revenues from these companies is more than $200 million.
The acquisitions provides Cipla scale in the US generics market through a product portfolio in central nervous system drugs, CVS, anti-infectives, and diabetes as well as other generics. InvaGen has a large capacity manufacturing base in Hauppauge, New York and an US-based R&D organization, Cipla's first such presence in the US.
The acquisition of InvaGen pharmaceuticals provides Cipla with approximately 40 approved abbreviated new drug applications, 32 marketed products, and 30 pipeline products that are expected to be approved over the next four years. In addition, InvaGen has filed five first-to-file products. Dosage forms include immediate-release, modified-release, and extended-release tablets and capsules. With a manufacturing footprint of approximately 350,000 square feet of GMP area, InvaGen has three units located in Long Island, New York, with a total production capacity of 12 billion tablets and capsules per annum and about 500 employees. The 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 markets in the US.
The completion of the deals is subject to certain conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions.