Wipro to buy HealthPlan Services

Wipro Ltd has agreed to buy HealthPlan services, a Florida, US based company that caters to the health insurance sector for $460 Million. This is the third buyout by India’s third largest software services exported in less than three months.

Earlier in December, Wipro spent $78 Million to buy Cellent, a German Technology Company that implements and maintains SAP (Systems Applications and Products) software for clients in automobile and manufacturing segments. Later, it bought a securities processing and fund administration services provider Viteos Group for $130 Million as the company looks to expand its portfolio of services to financial companies.

Both HealthcarePlan services and Viteos Group offer solutions over cloud computing platforms or what is called as Business process as a service. The partnership with HealthPlan services positions Wipro to participate in the shift of the US Health insurance industry towards a customer centric business model.

HealthPlan services strengthen Wipro position in the health insurance exchange market while offering synergies with Wipro presence in the Managed Medicare and commercial group insurance markets. This is Wipro fourth acquisition in last 12 months. 

Cipla to acquire two US Pharma Companies

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.

Teva to Buy Allergan Generics

Teva Pharmaceutical Industries Ltd. is an international pharmaceutical company headquartered in Israel. It specializes in primarily in generic drugs. It is the largest generic drug manufacturer in the world and one of the 15 largest pharmaceutical companies worldwide. The Industry has agreed to buy Allergan generic drugs business for $40.5 Billion.

Allergan generic business is generally seen as a better fit than Teva previous target Mylan because it will improve Teva distribution channels and because Allergan is strong in bio similar drugs. At the same time, Teva dropped its $40 Billion bid for Mylan, which hit a snag when a Dutch foundation linked to Mylan bought temporarily control of half the company in an attempt to block the takeover.

Allergan Generic is expected to contribute about $2.7 Billion in earnings before interest, taxes, and other items next year. Following the completion of the acquisition, Teva is expected to have pro forma sales of approximately $26 Billion worldwide and cash flow of about $6.5 Billion in 2016. Teva expects a double digit increase in its non-GAAP earnings per share in 2016 due to the acquisition.

Teva is Israel largest drug company and has long been a source of pride for Israelis. The company dates back to 1901, when its founders launched a small importer of medications. According to the company’s website, it began producing drugs in the 1930s. 

Lupin acquires Temmler Pharma

A day after announcing $880 Million acquisition in the US, drug maker Lupin will acquire specialty product portfolio from German company Temmler Pharma for an undisclosed amount. Temmler business has a strong strategic fit with Lupin Hormosan business in Germany and enables Lupin to bring an enhanced specialty CNS portfolio to German market.

Established in 1917, Temmler is a part of Aenova Group, a pharmaceutical contract manufacturer. Hormosan, also a German Pharma company was acquired by Lupin in 2008. Based in Marburg, Germany, Temmler has a specialty portfolio of 13 products including key Central Nervous System products and specialty products that address rare disease areas like Myasthenia Gravis, Huntington disease as well as fast growing dermatology products for anti-wart treatment.

This is Lupin sixth acquisition in last 18 months. In February 2014, Lupin had acquired Netherland based Nanomi for an undisclosed amount. A month later, it acquired control of Mexican company Grin. In May this year, it bought Brazilian company Medquimica Industria Farmaceutica.

Earlier this month, Lupin acquired ZAO Bio Biocom in Russia, again for an undisclosed amount. On Thursday, it announced acquisition of New Jersey based generic drugs firm Gavis for $880 Million. Gavis is the largest overseas acquisition by an Indian pharma company in US.

Lupin acquires US Generic firm Gavis

Mumbai based drug maker Lupin Ltd has entered into a definitive agreement to acquire New Jersey based privately held Gavis Pharmaceuticals Ltd and Novel Laboratories Inc. for $880 Million to expand in the US generic drug market. This is the biggest acquisition in the US by an Indian company. The acquisition is cash free and debt free.

Gavis brings to Lupin a highly skilled US based R&D organization, which would complement Lupin Coral Springs, Florida, inhalation R&D center and a New Jersey based manufacturing facility which will become Lupin first manufacturing site in the US. The acquisition enhances Lupin scale in the US generic market and also broadens its pipeline in dermatology, controlled substance products and other high valued and niche generics.

On 2^nd July, Lupin had acquired Russian company Biocom for an undisclosed amount. The company required sales of 861.2 Million Ruble in fiscal year 2014. In May 2015, Lupin entered into Brazilian pharmaceuticals market by acquiring Medquimica Industrial Pharmaceutical S.A Brazil for an undisclosed amount.

Lupin had strengthened its position in Latin American market last year by acquiring Laboratories Grin SA, the fourth largest pharmaceutical company in Mexico in the eye care segment, with sales of $28 Million in 2013. 

Marksans Pharma Buys Time-Cap Laboratories

Drug Maker Marksans Pharma had acquired US based Time-Cap Laboratories for an undisclosed amount. The acquisition was done through its wholly owned subsidiary Marksans Pharma. With the move, the company is strategically increasing its presence in the US Market, the largest pharmaceutical market in the world.

Marksans is engaged in research and development, manufacturing and marketing of generic drugs. New York based Time-cap manufactures solid dosage generic drugs, including private label over the counter medications, prescriptions drugs and nutritional supplements. Its average annual revenue over the last four years is over $30 Million and it achieved an annual adjusted EBITDA of approx. $4 Million.

The company currently has no debt. The company manufactures over 50 unique products from its New York facility, including tablets, caplets, capsules, and pellets. Time-cap offers Marksans an ideal platform to expand its operation in the US. The strategic acquisition helps Marksans to expand its manufacturing capabilities along with product portfolio and penetration in the US. Shares of Marksans rose over 6% after the company reached an agreement with its bondholders.

Valeant to buy Salix

Valeant Pharmaceuticals International, Inc. is a publicly traded pharmaceutical company based in Montreal, Canada. The company focuses on neurology, dermatology, and infectious disease with several drugs in late stage clinical trials and several currently on the market. Salix Pharmaceuticals Inc. is a specialist American Pharmaceutical Company. It develops drugs and medical devices that prevent and treat various gastrointestinal disorders.

In a most recent deal, Valeant announced a $14.6 Billion cash deal to acquire Salix. While, Valeant has completed roughly 40 acquisitions since 2008, giving it a diversified portfolio of some 1,500 drugs in every conceivable branch of medicine. In spite of Valeant more than doubling its share count over the last five years to help fund its acquisitions, it has a truckload of debt. The company trimmed a total of $1 Billion from its previous $16.3 Billion debt load.

The company said the deal had an enterprise value of $14.5 Billion, which would include Salix’s debt and any cash on hand. Valeant will pay $158.00 a share, valuing all cash transaction at about $10.1 Billion. The merger is expected to yield more than $500 Million in annual cost savings within six months.

The deal is the largest ever for Valeant, which lost a takeover contest for Allergan Inc. last year. Valeant also released its fourth quarter results with the announcement, posting net income of $534.1 Million, or $1.56 per diluted share, compared to $125.0 Million in the year earlier period, or 36 cents per diluted share. Revenue rose to $2.28 Billion, up from $2.06 Billion in the fourth quarter of 2013.