Cipla, a leading drug maker, has announced that Cipla (EU) U.K., the wholly owned subsidiary of the company, has entered into definitive agreements to acquire 100% stake in two US based companies, InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc for USD 550 million.
As per the agreement, the cash consideration payable for Invagen is USD 500 million and for Exelan is USD 50 million.
The company said, "These acquisitions will strengthen the overall presence of Cipla in the US in terms of scale, revenue, manufacturing opportunities and building a wide range of product portfolio."
Commenting further, the company said, "None of the persons belonging to promoter and promoter groups of the company has any interest in the transaction and it is not a related party transaction for the company."
"The transaction is expected to be completed by end of December 2015, subject to completion of certain conditions precedent and receipt of applicable regulatory approvals including the expiration or termination of the waiting period provided for by the Hart-Scott-Rodino Antitrust Improvements Act," it added.
Subhanu Saxena, MD & Global CEO, Cipla said, "This investment is in line with 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."
Invagen is engaged in the business of development, manufacturing, marketing and distribution of generic pharmaceuticals with focus on wide range of therapeutic areas including cardiovascular, anti-infective, CNS, anti-inflammatory, anti-diabetic and anti-depressants.
Exelan is engaged in the business of sales and marketing of generic pharmaceuticals for the government and institutional market.
Shares of the company gained Rs 4.5, or 0.69%, to trade at Rs 661.35. The total volume of shares traded was 152,691 at the BSE (10.07 a.m., Friday).
