Cipla to acquire generic businesses in US for $550m

The combined revenue from these transactions is over $200 million for the year ended December 2014 and over $225 million in the 12 months to June 2015, Cipla said in a statement. Photo: Mint

Mumbai-based Cipla Ltd on Friday announced that its UK arm Cipla EU will acquire two US-based companies, InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc., for $550 million.

The combined revenue from these transactions is over $200 million for the year ended December 2014 and over $225 million in the 12 months to June 2015, Cipla said in a statement.

InvaGen offers a manufacturing base in Hauppauge, NY, and a skilled US-based R&D (research and development) organization. This is Cipla’s first such presence in the US.

The acquisition of InvaGen pharmaceuticals also provides Cipla with about 40 approved ANDAs (abbreviated new drugs applications), 32 marketed products, and 30 pipeline products which are 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, Cipla said.

“This investment is in line with Cipla’s strategy to grow Cipla’s share in the US pharmaceutical market. We see InvaGen as a strong strategic fit with a relevant diverse portfolio as well as a strong market and customer presence. With a local manufacturing facility, Cipla can further strengthen its presence and commitment to serve patients in the country,” said Subhanu Saxena, managing director and global chief executive officer, Cipla.

“Though we are among the first drug manufacturers in India, we have missed global opportunities. Compared to other large players, who earn 50-60% of their revenue from markets such as the US, Cipla earns about 8% from the US market,” Saxena told Mint in an interview in June.

Saxena also plans to double revenue from the US market to 15-20% by 2020, with an additional 20% of sales coming from Europe.

This story was first published on livemint.com

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.