Cipla has announced that its UK arm,Cipla EU has entered into definitive agreements to acquire InvaGen Pharmaceuticals, Inc. and Exelan Pharmaceuticals,Inc., subject to certain closing conditions, in a deal valued at $550 million. It will be an all-cash transaction. The combined revenue of the two companies is projected to be more than $225 million in 2015.

This acquisition will give Cipla scale in the U.S. 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, NY and a skilled U.S.-based R&D organization. The acquisition of InvaGen pharmaceuticals also provides Cipla with about 40 approved ANDAs, 32 marketed products, and 30 pipeline products that are expected to be approved over the next four years. They combine to represent a balanced, diversified and growing portfolio targeting large and niche markets.

In addition, InvaGen has filed five first-to-file products which represent a market size of about $8 billion in revenue by 2018. Dosage forms include immediate release, modified release and extended release tablets and capsules. With a manufacturing footprint of about 350,000 sq.ft of GMP area, InvaGen has three units located in Long Island, NY, 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 U.S. The acquisition of Exelan Pharmaceuticals provides Cipla access to the government and institutional market in the U.S.