India's Cipla has secured its first U.S. manufacturing facility, having closed on its deal to buy two related U.S. drug companies. It called the deal its second "landmark acquisition" in its 8 decades of operation.
Mumbai-based Cipla got a 350,000-square-foot manufacturing plant in Long Island with its $550 million buyout of InvaGen Pharmaceuticals, a Hauppauge, NY-based generics maker with 32 products on the market and 30 in the pipeline.
It also acquired Exelan Pharmaceuticals, a Lawrenceville, GA, operation that markets and sells InvaGen products into the government and institutional markets. It picked up a combined workforce of 500 employees. It said combined revenues for the two companies last year were $230 million. Cipla currently gets only about 10% of its revenues from the U.S.Cipla's Umang Vohra
"InvaGen's balanced portfolio, robust manufacturing base and strong R&D capabilities will act as lever to expand Cipla's reach in the US market," Umang Vohra, global chief operating officer of Cipla (EU), said in a statement. Cipla made the acquisition through that U.K.-based subsidiary.
The Indian drugmaker also inherited some FDA concerns over the three-unit InvaGen plant. Several months ahead of the announced deal, the FDA issued the facility a Form 483 for several issues. Since then, FDA concerns have also cropped up at one of Cipla's India plants. The FDA last summer issued a Form 483 to a Cipla plant in Indore. Some of the observations related to a recall of levalbuterol which Cipla voluntarily pulled from the U.S. market after the asthma inhalation drug failed a test for a degradant.
- here's the Cipla release