Cipla EU Ltd will acquire two
US-based companies, InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc.,
for $550 Million to strengthen its presence in world’s largest drug market. The
combined revenue from these transactions is more than $200 Million for the year
ended December and more than $225 Million in the 12 Months to June.
The all-cash transactions will give
the company scale in the US generics market through a wide ranging product portfolio
in central nervous system, cardiovascular system, anti-effectives, diabetes, as
well as other value added generics. This is Cipla second largest acquisition in
its 80 years of existence in 2013. Cipla acquired 100% stake in South African
arm Cipla Medpro South Africa Ltd for Rs. 2707 crore.
With these acquisitions, the US now
will have sales of $400 Million, accounting for almost 16-17% of its estimated
earnings. InvaGen Pharmaceuticals has 40 ANDAs, 32 marketed products and 30
pipeline products expected to be approved over the next four years. In addition,
InvaGen 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 the US. Generic Pharmaceuticals make up 80% of the prescriptions
dispensed in the US but account for just 27% of total drug spending. The US
generic drug market is estimated at a yearly $35 Billion.
No comments:
Post a Comment