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Lupin enters into a definitive agreement to acquire GAVIS Pharmaceuticals LLC and Novel Laboratories Inc

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Capital Market
Last Updated : Jul 23 2015 | 7:47 PM IST

Transaction value is USD 880 million

Lupin has entered into a definitive agreement to acquire privately held GAVIS Pharmaceuticals LLC and Novel Laboratories Inc. (GAVIS), subject to certain closing conditions, in a transaction valued at USD 880 million, cash free and debt free.

The transaction has been unanimously approved by the Boards of Directors of Lupin and GAVIS. The acquisition enhances Lupin's scale in the US generic market and also broadens Lupin's pipeline in dermatology, controlled substance products and other high-value and niche generics. GAVIS brings to Lupin a highly skilled US based R & D organization which would complement Lupin's Coral Springs, Florida, inhalation R&D center. GAVIS's New Jersey based manufacturing facility will become Lupin's first manufacturing site in the US.

New Jersey based GAVIS is a privately held company specializing in formulation development, manufacturing, packaging, sales, marketing, and distribution of pharmaceuticals products. GAVIS recorded sales of $96 million in FY 2014 and has over 250 New Jersey based employees. GAVIS currently has 66 ANDA filings pending approval with the US FDA and a pipeline of over 65+ products under development. 72% of these filings pending approvals represent niche dosage forms. To date, GAVIS has filed 25 Para IVs and 8 FTFs products. GAVIS's pending filings address a market value of about USD 9 billion. The combined company will have a portfolio of 101 in-market products, 164 cumulative filings pending approval and a deep pipeline of products under development for the US. The acquisition creates the 5th largest portfolio of ANDA filings with the US FDA, addressing a USD 63.8 billion market.

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First Published: Jul 23 2015 | 6:09 PM IST

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