<div><em>The Friday announcement lifted Cipla shares as high as 4 per cent to Rs 675 a unit to start with, the share price settled at 4.4 per cent lower at Rs 652 just before Friday closing, reports <strong>C H Unnikrishnan</strong></em><br><br>Indian generic drug maker Cipla said on Friday (4 September) that its UK unit, Cipla EU, has acquired two US-based generic drug companies -- InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc for a total value of Rs 3,655 crore ($550 million). 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 neuro, cardiovascular, diabetes, infection treatments. </div><div> </div><div>Although the Friday announcement lifted Cipla shares as high as 4 per cent to Rs 675 a unit from the previous close in the morning trade on BSE, the share price settled at 4.4 per cent lower at Rs 652 just before Friday closing. </div><div> </div><div>"The transaction being subject to certain closing conditions, is valued at $550 million and will be an all cash transaction," Cipla said in statement. </div><div> </div><div>The combined revenue from these transactions is over $200 million for the year ended December 2014, the company added.</div><div> </div><div>InvaGen, owned by the promoter of Hyderabad-based drug maker Hetero Drugs Ltd, currently offers a large capacity manufacturing base at Hauppauge in New York. It also provides Cipla with a skilled research and development unit in the US for the first time, in addition to a large product pipeline. </div><div> </div><div>InvaGen has 3 manufacturing units located in Long Island with a total production capacity of 12 billion tablets and capsules per annum and about 500 employees. This acquisition further provides Cipla with an access to large wholesalers/retailers in the US. While, the acquisition of Exelan Pharmaceuticals provides Cipla access to the government and institutional market in the US through Exelan’s deep expertise, engagement and experienced management team in the business. </div><div>“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," said Cipla managing director and global chief executive Subhanu Saxena. </div><div> </div><div> "This is an exciting opportunity for InvaGen to join with Cipla. InvaGen brings an experienced team and good manufacturing capabilities to the partnership. We are confident that the combination of InvaGen and Cipla will significantly enhance the product portfolio offering, including specialty products, to the US patients and will give InvaGen access to Cipla's global expertise and presence," said Sudhakar Vidiyala, president and chief executive officer of InvaGen Pharmaceuticals.</div><div> </div><div>While responding to media reports on Friday that Hetero divests its US generic business, the Hyderabad drug maker said that the current sale of Invagen pharmaceuticals is the sale of strategic investment by the Hetero promoter group which has a different product portfolio than Hetero. </div><div> </div><div>"InvaGen Pharmaceuticals is not linked directly to the flagship companies of Hetero group, and the company (Hetero) has currently a portfolio of 130 to-be-approved products in US. The company will continue to strengthen its presence in US market by investing in generics and speciality products through its subsidiary firm Camber Pharmaceuticals Inc," Hetero spokesperson said.</div><div> </div>
