Cipla to acquire US-based Invagen and Exelan for $550 mn

 
Commenting on the acquisition, Subhanu Saxena, MD & global CEO, Cipla Limited, 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 - which is engaged in the business of development, manufacturing, marketing and distribution of generic pharmaceuticals with focus on wide range of therapeutic areas including cardiovascular, anti-infective, CNS, anti-inflammatory, anti-diabetic and anti-depressants – had registered a turnover of approximately $ 130 million, $ 135 million and $ 190 million in 2012, 2013 and 2014 respectively.

 
InvaGen offers a large capacity manufacturing base in Hauppauge, NY and a skilled US-based R&D organisation, Cipla’s first such presence in the US. 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. “They represent a balanced, diversified and growing portfolio targeting highly attractive, large and niche markets. In addition, InvaGen has filed 5 first-to-file products which represent a market size of approximately $8 billion in revenue by 2018. Dosage forms include immediate release, modified release and extended release tablets and capsules,” added Cipla in the press release.

 
With a manufacturing footprint of about 350,000 sq ft of GMP area, InvaGen has 3 units located in Long Island, NY, with a total production capacity of 12 billion tablets and capsules per annum and about 500 employees. This acquisition further provides Cipla with an access to large wholesalers/retailers in the US.
 
Dr Sudhakar Vidiyala, president and CEO, InvaGen Pharmaceuticals Inc, commented, “This is an exciting opportunity for InvaGen to join with Cipla. InvaGen brings an experienced team and good manufacturing capabilities to the partnership. 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.”

 
Exelan - which is engaged in the business of sales and marketing of generic pharmaceuticals for the government and institutional market- recorded a turnover of approximately $ 2 million, $ 14 million and $ 28 million in 2012, 2013 and 2014 respectively. The acquisition of Exelan Pharmaceuticals is expected to provide Cipla access to the government and institutional market in the US through Exelan’s deep expertise, engagement and experienced management team in the business.
 
The transaction is expected to be completed by end of December 2015, subject to completion of certain conditions precedent and receipt of applicable regulatory approvals including the expiration or termination of the waiting period provided for by the Hart-Scott-Rodino Antitrust Improvements Act.