Drug major Cipla has entered into agreements to acquire US-based InvaGen Pharmaceuticals and Exelan Pharmaceuticals, owned by one of the promoters of Hetero Group, in an all cash transaction of USD 550 million (approx Rs 3,652 crore).
The company's "UK arm Cipla EU has entered into definitive agreements to acquire two US-based companies, InvaGen Pharmaceuticals Inc and Exelan Pharmaceuticals Inc. The transaction being subject to certain closing conditions, is valued at USD 550 million and will be an all cash transaction", Cipla said in a statement.
This acquisition will give Cipla scale in the US generics market through a wide ranging product portfolio in CNS, CVS, anti-infectives, diabetes as well as other value-added generics, it said.
Commenting on the acquisition, Cipla MD and Global CEO Subhanu Saxena said: "This investment is in line with Cipla's strategy to grow its share in the US pharmaceutical market."
The company sees InvaGen as a strong strategic fit with a relevant diverse portfolio as well as a strong market and customer presence, he said.
With a local manufacturing facility it can urther strengthen its presence and commitment to serve patients in the country, he added.
InvaGen offers a large capacity manufacturing base in Hauppauge, NY and a skilled US-based R&D organization. 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, Cipla said.
