India-based Cipla’s UK division has agreed to acquire two US companies in all-cash deals worth $550m, as part of its aim to expand its presence in the world’s largest generics market.
As part of the deal, Cipla EU is acquiring InvaGen Pharmaceuticals and Exelan Pharmaceuticals, which had combined sales of more than $225m in the 12 months ending June this year.
The acquisitions will give Cipla scope in the US generics market through a wide ranging product portfolio in CNS, CVS, anti-infectives, and diabetes, as well as other value-added generics.
Cipla MD and global CEO Subhanu Saxena 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."
InvaGen is focused on developing, manufacturing, marketing and distributing generic pharmaceuticals with a focus on several therapeutic areas such as cardiovascular, anti-infective, CNS, anti-inflammatory, anti-diabetic and anti-depressants.
The company has drug product development and commercial operations at three different facilities in Hauppauge, New York.
With the acquisition of InvaGen, Cipla gains access to around 40 approved abbreviated new drug applications, 32 marketed products and 30 pipeline products that are anticipated to be approved in the next four years.
The other company, Exelan is focused on the sales and marketing of generic pharmaceuticals for the government and institutional market.
Through Exelan, Cipla will have access to the government and institutional market in the US.
Cipla USA CEO North America and director Tim Crew said: "We are delighted with the immediate and substantial relevance this combination brings to Cipla in the USA.
"We are committed to an orderly transition process with customers and InvaGen to ensure the ongoing continuity of a high-quality and reliable supply to our customers and their patients."