India-based global pharmaceutical major Cipla on Friday said its Britain arm - Cipla EU - has entered into definitive agreements to completely acquire two US based companies -- InvaGen Pharmaceuticals and Exelan Pharmaceuticals -- for $550 mn.
The combined revenue from these transactions is over $200 million for the year ended December 2014 and over $225 million for the period July 2014 to June 2015.
In a statement, the company said these acquisitions were a landmark move and will give it "scale in the US generics market" through a wide range of product portfolio in CNS, CVS, anti-infectives, diabetes as well as other value added generics.
"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," managing director and CEO of Cipla Subhanu Saxena said.
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 four years.
In addition, it has filed five first-to-file products which represent a market size of $8 billion in revenue by 2018.
The acquisition of Exelan Pharmaceuticals provides Cipla access to the government and institutional market in USA.
The completion of this all-cash transaction based acquisition is subject to certain conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions.
