Business Standard

Monday, December 23, 2024 | 11:59 AM ISTEN Hindi

Notification Icon
userprofile IconSearch

Lupin to expand US generic business with acquisition of Gavis for $880 mn

With this acquisition, the Mumbai-based pharma firm will get access to Gavis Pharma's New Jersey based manufacturing facility - Lupin's first manufacturing site in the US

ImageBS B2B Bureau B2B Connect | Mumbai
Lupin to expand US generic business with acquisition of Gavis for $880 mn

Lupin's Goa facility

Lupin Limited has signed an agreement to acquire privately held Gavis Pharmaceuticals LLC and Novel Laboratories Inc (Gavis), subject to certain closing conditions, in a transaction valued at $ 880 million, cash free and debt free. The New Jersey (USA) based Gavis is a privately held company specialising in formulation development, manufacturing, packaging, sales, marketing, and distribution of pharmaceuticals products.  
 
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 organisation 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.
 
Gavis, which recorded sales of $ 96 million in FY 2014, currently has 66 ANDA filings pending approval with the US FDA and a pipeline of over 65 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 $ 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 fifth largest portfolio of ANDA filings with the US FDA, addressing a $ 63.8 billion market.
 
Vinita Gupta, chief executive officer of Lupin Limited, said, "This is a pivotal acquisition for Lupin as it aligns with our goal to expand and deepen our US presence. Gavis has a strong track record of delivering highly differentiated products in a short time and is poised for continued strong growth as it delivers on its existing pipeline. Gavis’s capabilities and pipeline are an excellent complement to Lupin. The acquisition accelerates Lupin’s entry into niche areas like controlled substances and dermatology.”
 
Dr Veerappan Subramanian, founder and CEO, Gavis, commented, “This is a time of globalisation for the specialty pharmaceutical industry and Gavis is well positioned to capitalise on this exciting opportunity. Joining forces with Lupin, a truly global player, will help realise our vision of building a broader, research-based high value, specialty business through organic growth.”

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jul 24 2015 | 9:19 PM IST

Explore News