Indian multinational Cipla secures $550M acquisition of two U.S. firms

Indian pharmaceutical multinational Cipla's U.K. arm, Cipla (EU) Limited, completed the purchase of U.S.-based InvaGen Pharmaceuticals and Exelan Pharmaceuticals.

Cipla CEO Subhanu Saxena  

The acquisition was made through a wholly owned special purpose vehicle, which is expected to merge into InvaGen Pharmaceuticals when the acquisition is complete.

This is Mumbai-based Cipla's second acquisition in its 80-year history, the first being South Africa-based Cipla Medpro in 2013. InvaGen will be bringing over around 40 approved ANDAs, 32 marketed products, five first-to-file products and 30 products that are expected to gain approval in the next four years.

InvaGen's 350,000-square-foot manufacturing plant in Long Island will grant Cipla a better footprint in the U.S., with a capsule production capacity of 12 billion annually. This will be the company's home base to launch Cipla's injectables and respiratory and product line in the years ahead.

Cipla's portfolio of products will now cover a wide array of therapies, including CVS, CNS, respiratory, oncology and diabetes. "InvaGen's balanced portfolio, robust manufacturing base and strong R&D capabilities will act as lever to expand Cipla's reach in the U.S. market," Cipla Global Chief Operating Officer Umang Vohra said in the release.

A privately held sales and marketing company, Exelan Pharmaceuticals focused on the sales and marketing of generic pharmaceuticals and therapeutic products for government and institutional markets.

The two companies acquired made over $230 million combined for year-end 2015.

- here's the release by Cipla