Lupin, one of the leading pharmaceutical companies in India, has entered into a definitive agreement to acquire privately held GAVIS Pharmaceuticals LLC and Novel Laboratories Inc. (GAVIS), subject to certain closing conditions, in a transaction valued at USD 880 million, cash free and debt free. The transaction has been unanimously approved by the boards of directors of Lupin and GAVIS.
"The acquisition enhances Lupin's scale in the US generic market and also broadens Lupin's pipeline in dermatology, controlled substance products and other high-value and niche generics," the company said.
"GAVIS brings to Lupin a highly skilled US based R & D organization which would complement Lupin's Coral Springs, Florida, inhalation R&D center. GAVIS's New Jersey based manufacturing facility will become Lupin's first manufacturing site in the US," it said.
New Jersey based GAVIS is a privately held company specializing in formulation development, manufacturing, packaging, sales, marketing, and distribution of pharmaceuticals products.
GAVIS's pending filings address a market value of about USD 9 billion. The combined company will have a portfolio of 101 in-market products, 164 cumulative filings pending approval and a deep pipeline of products under development for the US. The acquisition creates the 5th largest portfolio of ANDA filings with the US FDA, addressing a USD 63.8 billion market.
Commenting on the acquisition, Vinita Gupta, chief executive officer of Lupin said, ''This is a pivotal acquisition for Lupin as it aligns with our goal to expand and deepen our US presence. GAVIS has a strong track record of delivering highly differentiated products in a short time and is poised for continued strong growth as it delivers on its existing pipeline. GAVIS's capabilities and pipeline are an excellent complement to Lupin. The acquisition accelerates Lupin's entry into niche areas like controlled substances and dermatology.
We are confident that Lupin's proven commercialization capabilities, vertically integrated manufacturing operations and supply chain strengths will accelerate GAVIS's growth. The acquisition is expected to be accretive to the earnings from the first full year of operations. In addition to the compelling strategic fit, there is a strong cultural fit between GAVIS and Lupin's entrepreneurial spirit and values.''
Shares of the company declined Rs 97.55, or 5.35%, to trade at Rs 1,726.50. The total volume of shares traded was 456,082 at the BSE (3.24 p.m., Thursday).