Cipla Closes on Two US Generics Acquisitions
Cipla, a Mumbai, India-based pharmaceutical company, has closed on its previously announced acquisitions of two US-based companies, InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc, for a combined $550 million. The acquisition was made by Cipla (EU) Limited through a wholly owned special purpose vehicle that would merge into InvaGen Pharmaceuticals Inc. after the acquisition. The combined revenue for the two companies for the year-ended 2015 is more than $230 million.
The acquisitions provide 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. 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.
On a product basis, the acquisition of InvaGen pharmaceuticals also provides Cipla with approximately 40 approved abbreviated new drug 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. Dosage forms include immediate-release, modified-release, and extended-release tablets and capsules. The acquisition further provides Cipla with an access to large wholesalers/retailers in the US.
Tacquisition of Exelan Pharmaceuticals provides Cipla access to the government and institutional markets in the US.