Zydus acquires two ANDAs from Teva

Ahmedabad-based drug major Zydus Cadila has strengthened its US portfolio with the acquisition of two abbreviated new drug applications (ANDAs) from Israel's Teva (with an estimated market size of $200 million) that are being divested by Teva as a pre-condition to its acquisition of Allergan's generic business. The acquisition of these ANDAs is contingent on the closing of the Teva-Allergan Generics transaction and approval by the US Federal Trade Commission. The financial details of the transaction are undisclosed.

The company said that these ANDAs have been acquired by its 100% subsidiary Zydus Worldwide DMCC and the transaction will be financed through the group's internal accruals. The acquired portfolio comprises an ANDA which is already commercialised and one pipeline ANDA which is a transdermal patch. The estimated market size of the two ANDAs put together is nearly $200 million.

Speaking on the development, Pankaj R Patel, chairman and managing director of the Zydus Group, said that this is an important acquisition which will help Zydus to expand its existing portfolio in the US and strengthen its pipeline of complex generic products. Zydus has made significant investments in the transdermal manufacturing technology and had also acquired a transdermal manufacturing facility in the US, a few years ago. He said: "Zydus is upbeat about the growth potential in the US and will continue to pursue more inorganic opportunities in the US market."

Headquartered in Ahmedabad, India, Zydus Cadila Group employs over 19,000 people worldwide. In 2013, the group was the first to identify and develop Lipaglyn (Saroglitazar) and launch India's first NCE in the market. In 2014, the group launched Exemptia, the world's first biosimilar for Adalimumab, the largest selling therapy worldwide for inflammatory arthritis.

Cadila Healthcare shares were trading up 1.26% to Rs 317.35 per share in the afternoon on the BSE.