Cipla, a Rs. 10,800 crore plus global pharmaceutical company, has entered into definitive agreements to acquire two US-based companies viz, InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc., for a total consideration of Rs. 3,635 crore ($550 million) in an all cash transaction through its UK arm, Cipla EU.

The combined revenue from these transactions is over $200 million for the year ended December 2014 and over $225 million in LTM June 2015. 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 CNS, CVS, anti-infectives, diabetes as well as other value added generics.

InvaGen offers a large capacity manufacturing base in Hauppauge, New York and a skilled US-based R&D organization, Cipla’s first such presence in the US.

The acquisition of InvaGen pharmaceuticals also provides Cipla with about 40 approved ANDAs, 32 marketed products, and 30 pipeline products which are expected to be approved over the next 4 years. They represent a balanced, diversified and growing portfolio targeting highly attractive, large and niche markets.

In addition, InvaGen has filed 5 first-to-file products which represent a market size of over $8 billion in revenue by 2018. Dosage forms include immediate release, modified release and extended release tablets and capsules. With a manufacturing footprint of over 350,000 sq.ft of GMP area, InvaGen has 3 units located in Long Island, New York, 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.

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.

Commenting on the acquisition, Subhanu Saxena, MD & Global CEO, Cipla Ltd 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.”

Tim Crew, CEO North America and Director of Cipla USA Inc. added: "We are delighted with the immediate and substantial relevance this combination brings to Cipla in the USA. We are committed to an orderly transition process with customers and InvaGen to ensure the on-going continuity of a high quality and reliable supply to our customers and their patients”

Dr Sudhakar Vidiyala, president and CEO, InvaGen Pharmaceuticals Inc, commented, "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."


The completion of this acquisition is subject to certain conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions.

Barclays is acting as financial advisor to Cipla. Hughes Hubbard & Reed LLP are acting as legal advisor to Cipla. The Jefferies LLL is acting as an exclusive financial advisor to InvaGen. Manatt, Phelps & Phillips, LLP are acting as legal advisor to InvaGen.

Hauppauge, New York based InvaGen Pharmaceuticals is a leading generic pharmaceutical company in the US. InvaGen is engaged in development, manufacturing, marketing and distributing of generic pharmaceuticals with focus on wide range of therapeutic areas including, cardiovascular, anti-infective, CNS, anti-inflammatory, anti-diabetic and anti-depressants. Dosage forms include both immediate release and modified release and extended release of tablets and capsules.


Delaware based Exelan Pharmaceuticals is a privately held sales and marketing company, with a focus on generic pharmaceuticals for the government and institutional market. Exelan started selling products in 2012 and sells products manufactured by InvaGen to government buyers. Exelan is managed by a strong team which brings many years of experience in this business.