Cipla to expand in US generics market, acquiring InvaGen and Exelan

Through its UK arm, Indian drugmaker Cipla (BSE: 500087) has entered into definitive agreements to acquire two USA-based companies, InvaGen Pharmaceuticals and Exelan Pharmaceutics, currently owned by one of the promoters of Hetero Group.

The transaction, which is subject to certain closing conditions, is valued at $550 million and will be an all cash deal. The combined revenue from these transactions is over $200 million for the year ended December 2014 and over $225 million in the 12 months June 2015.

This acquisition, which is the second landmark acquisition in Cipla's 80 years of history, will give the company scale in the US generics market through a wide ranging product portfolio in central nervous system, cardiovasculars, anti-infectives and diabetes as well as other value added generics. InvaGen offers a large capacity manufacturing base in Hauppauge, NY, and a skilled USA-based R&D organization, Cipla's first such presence in the USA.