<div>Cipla Ltd, India's fourth-largest drugmaker by sales, said on Friday it has agreed to buy two generics businesses in the United States in an all-cash deal worth $550 million to get access to a wide range of products.</div><div> </div><div>The companies to be acquired, InvaGen Pharmaceuticals Inc and Exelan Pharmaceuticals Inc, had combined sales of $225 million in the last twelve months to June 2015, Cipla said in a statement.</div><div> </div><div>As per the agreement, the cash consideration payable for Invagen is $500 million and for Exelan is $50 million.</div><div> </div><div>The transaction is expected to be completed by end of December 2015, Cipla said.</div><div> </div><div>The company said the acquisitions will strengthen its presence in the US in terms of scale, revenue, manufacturing opportunities and building a wide range of product portfolio.</div><div> </div><div>Invagen was incorporated in the year 2003 and 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, according to the Cipla statement.</div><div> </div><div>The turnover of Invagen for the financial year ending December 2012, December 2013 and December 2014 was about $130 million, $135 million and $190 million respectively.</div><div> </div><div>Exelan was incorporated in the year 2011 and is engaged in the business of sales and marketing of generic pharmaceuticals for the government and institutional market.</div><div> </div><div>The turnover of Exelan for the financial year ending December 2012, December 2013 and December 2014 was about $2 million, $14 million and $28 million respectively.</div><div> </div><div><strong>Shares Rise</strong></div><div><div>Shares in Cipla, a pioneer in India's emergence as a force in generic drugs, climbed after the announcement, extending gains to as much as 4 per cent, while the Nifty was trading down nearly 2 per cent.</div><div> </div><div>The US makes up only about 8 per cent of its total sales so far, but Cipla expects it will make up a fifth of its overall sales by 2020, Chief Executive Subhanu Saxena said in June.</div><div> </div><div>The ramp up of the US business is aimed at reducing its reliance on emerging markets such as India, China and Brazil that currently contribute about 80 per cent to its overall revenue.</div></div>
