Tuesday, 13 November 2018

Cipla to acquire Avenue Therapeutics

Cipla has entered into an agreement to acquire US based specialty Pharma Company Avenue Therapeutics Inc. for $215 Million. This is in line with Cipla strategy of building a specialty drugs pipeline in the US.

Cipla's US subsidiary InvaGen Pharmaceuticals Inc. will make the acquisition in two stages. In the first stage, InvaGen or its affiliates will acquire a 33.3 per cent stake in Avenue's via new shares for around $35 mn (currently expected to be 5,833,333 shares at $6.00 per share).
Avenue is working on the development and commercialization of intravenous Tramadol, an analgesic to treat pain in adults. There is currently no approved intravenous formulation in the US. Avenue is evaluating IV Tramadol in Phase 3 clinical program: a trial in patients following bunionectomy surgery has been completed and a safety study is ongoing. A pivotal Phase 3 trial in patients following abdominoplasty surgery is expected to commence later this year in 2018.

Cipla, which trails only Sun Pharmaceutical Industries Ltd among Indian drug makers by market value, has been streamlining its operations globally, acquiring products and businesses in some regions while also shedding some units to sharpen focus on core areas.

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