Lupin buys Gavis to gain first US manufacturing site
pharmafile | July 28, 2015 | News story | Manufacturing and Production | Gavis, Lupin, manufacturing, production
Indian drug manufacturer Lupin is expanding to the US by purchasing Gavis pharma for $880 million, in a major boost to its manufacturing and production capabilities.
Acquiring Gavis gives Lupin access to 66 generic drugs, which the New Jersey firm has already applied to the FDA for approval.
The acquisition enhances Lupin’s presence in the US generic market, and Lupin bosses say it also broadens the company’s pipeline in dermatology, controlled substance products and other high-value and niche generics.
The cash-free and debt-free transactionis still subject to certain closing conditions, but has been approved by Lupin and Gavis’s boards of directors.
Commenting on the deal is, Ms Vinita Gupta, chief executive of Lupin who says: “This is a pivotal acquisition for Lupin as it aligns with our goal to expand and deepen our US presence. 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.
She continues: “Gavis’s capabilities and pipeline are an excellent complement to Lupin. The acquisition accelerates Lupin’s entry into niche areas like controlled substances and dermatology. We are confident that Lupin’s proven commercialisation capabilities, vertically integrated manufacturing operations and supply chain strengths will accelerate Gavis’ growth. The acquisition is expected to be accretive to the earnings from the first full year of operations. In addition to the compelling strategic fit, there is a strong cultural fit between Gavis and Lupin’s entrepreneurial spirit and values.”
Gavis brings to Lupin a highly-skilled US based R&D organisation which would complement Lupin’s R&D centre in Coral Springs, Florida. The New Jersey based manufacturing facility will become Lupin’s first manufacturing site in the US.
Gavis is a privately-held company that specialises in formulation development, manufacturing, packaging, sales, marketing, and distribution of pharmaceuticals products.
Dr Veerappan Subramanian, founder and chief executive of Gavis says: “This is a time of globalisation for the specialty pharmaceutical industry and Gavis is well positioned to capitalise on this exciting opportunity. Joining forces with Lupin, a truly global player, will help realise 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.”
Yasmita Kumar
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