Lupin Acquires GAVIS Pharmaceuticals for $880M

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Lupin said today it plans to acquire GAVIS Pharmaceuticals and Novel Laboratories for $880 million, in a deal that would expand the buyer’s presence in the U.S. generics market as well as its pipeline in dermatology, controlled substance products, and other high-value and niche generics.

Lupin said its inhalation R&D site in Coral Springs, FL, would be complemented by GAVIS’ U.S. R&D operation. That and other GAVIS operations are based in Somerset, NJ, where its manufacturing facility would become Lupin’s first U.S. manufacturing site.

The combined company will have a portfolio of 101 in-market products, 164 cumulative filings pending approval—including the fifth largest portfolio of ANDA filings with the FDA—and a “deep” pipeline of products under development for the U.S., Lupin added.

Privately held GAVIS specializes in formulation development, manufacturing, packaging, sales, marketing, and distribution of pharmaceuticals products. GAVIS recorded sales of $96 million during its 2014 fiscal year, and has more than 250 employees based in New Jersey.

“GAVIS has a strong track record of delivering highly differentiated products in a short time and is poised for continued strong growth as it delivers on its existing pipeline,” Lupin CEO Vinita Gupta said in a statement. “We are confident that Lupin’s proven commercialization capabilities, vertically integrated manufacturing operations and supply chain strengths will accelerate GAVIS’s growth.”

Added GAVIS founder and CEO Veerappan Subramanian, Ph.D.: “Joining forces with Lupin, a truly global player, will help realize our vision of building a broader, research-based high value, specialty business through organic growth. I am confident that the combined entity will be a powerhouse in the US specialty space and will significantly enhance Lupin’s US platform.”

The boards of Lupin and GAVIS have unanimously approved the deal.

Headquartered in Mumbai, Lupin produces and develops branded and generic formulations as well as biotechnology products and APIs globally. The company says its areas of significant market share include cardiovascular, diabetes, asthma, pediatric, CNS, GI, anti-infective and NSAID space, adding that its anti-TB and cephalosporin segment holds global leadership.

Lupin is the fifth largest generic drug company in the U.S.; the company cites IMS Health statistics showing it has a 5.3% market share by prescriptions. Lupin is also India’s third-largest pharmaceutical company by sales.

Gupta said the GAVIS acquisition is expected to be accretive to earnings from the first full year of operations. For the year that ended March 31, Lupin reported after-tax profits of Rs. 24.032 million ($393 million) on revenue of Rs. 125.997 billion ($2.06 billion).








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