Lupin buys US generics firm Gavis for $880 million

Published On 2015-07-24 17:17 GMT   |   Update On 2015-07-24 17:17 GMT
Advertisement
NEW DELHI: In a large victory for the Indian Multinationals, Drug major Lupin today said it is acquiring US-based Gavis for USD 880 million (over Rs 5,610 crore) to consolidate presence in the world's largest pharmaceuticals market.

The company 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", Lupin said in a statement.

The transaction has been unanimously approved by the boards of directors of Lupin and Gavis, it added.

Lupin Ltd Chief Executive Officer Vinita Gupta said: "This is a pivotal acquisition for Lupin as it aligns with our goal to expand and deepen our US presence."

The acquisition accelerates Lupin's entry into niche areas like controlled substances and dermatology, she added.

"We are confident that Lupin's proven commercialisation capabilities, vertically integrated manufacturing operations and supply chain strengths will accelerate Gavis's growth," Gupta said.

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 Mumbai based firm said.

Gavis brings a highly skilled US based R & D organisation 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 added.

"This is a time of globalisation for the specialty pharmaceutical industry... I am confident that the combined entity will be a powerhouse in the US specialty space and will significantly enhance Lupin's US platform," Gavis Founder and CEO Veerappan Subramanian said.

New Jersey based GAVIS is a privately held company specialising in formulation development, manufacturing, packaging, sales, marketing, and distribution of pharmaceuticals products.

Gavis recorded sales of USD 96 million in FY 2014 and has over 250 New Jersey based employees. It has 66 ANDA filings pending approval with the US Food and Drug Administration (USFDA) and a pipeline of over 65 plus products under development.

The combined company will have a portfolio of 101 products, 164 cumulative filings pending approval and a deep pipeline of products under development for the US market.

The Mumbai-based firm is on a spree to acquire pharmaceutical firms globally.

Earlier this month, the company had acquired Russia's Biocom, marking its entry into one of the world's top drug markets. In May, Lupin had strengthened its position in the Latin American market when it entered the Brazilian market by acquiring Medquimica Industria Farmaceutica SA.

Last year the Lupin had acquired Laboratories Grin SA in Mexico, the fourth largest drugmaker in the country.




Lupin is an Mumbai based transnational company, and the 10th largest generic pharmaceutical company by revenue

Tags:    

Disclaimer: This website is primarily for healthcare professionals. The content here does not replace medical advice and should not be used as medical, diagnostic, endorsement, treatment, or prescription advice. Medical science evolves rapidly, and we strive to keep our information current. If you find any discrepancies, please contact us at corrections@medicaldialogues.in. Read our Correction Policy here. Nothing here should be used as a substitute for medical advice, diagnosis, or treatment. We do not endorse any healthcare advice that contradicts a physician's guidance. Use of this site is subject to our Terms of Use, Privacy Policy, and Advertisement Policy. For more details, read our Full Disclaimer here.

NOTE: Join us in combating medical misinformation. If you encounter a questionable health, medical, or medical education claim, email us at factcheck@medicaldialogues.in for evaluation.

Our comments section is governed by our Comments Policy . By posting comments at Medical Dialogues you automatically agree with our Comments Policy , Terms And Conditions and Privacy Policy .

Similar News