Why this acquisition?
The acquisition will help Lupin increase presence in the US, its largest market where sales fell 31 per cent to $180 million in the first quarter. Lupin’s US growth has been hampered by a slower pace of winning generic drug approvals since the US Food and Drug Administration (USFDA) overhauled its generics review process.
“Buying Gavis would give it access to 66 generic drugs for which the New Jersey firm has sought approval, representing a potential market value of $9 billion”, Lupin said. “The company has entered into a definitive agreement to acquire privately held Gavis Pharmaceuticals LLC and Novel Laboratories (Gavis) subject to certain closing conditions in a transaction valued at $880 million, cash free and debt free,” Lupin said in a statement.
“Gavis’ New Jersey-based manufacturing facility will become Lupin’s first manufacturing site in the US”, it added. Lupin chief executive officer (CEO) Vinita Gupta said, “This is a pivotal acquisition for Lupin as it aligns with our goal to expand and deepen our US presence.” Gavis founder-CEO Veerappan Subramanian said, “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 Lupins US platform.”
GAVIS works with other companies that are looking to develop drugs for production, marketing, distribution and warehousing. GAVIS launched its first product in May 2009 and distributes its products from a 150,000 square foot state-of-the-art warehouse facility in Somerset, New Jersey. If you are looking for a distributor who has a distribution license in all states, GAVIS is covered throughout the U.S and Puerto Rico. GAVIS produces the majority of its products in-house in addition to partnering with pharmaceuticals companies worldwide to synergize development, manufacturing, and marketing capabilities.
Lupin’s Previous acquisitions
Lupin’s entry in LATAM with acquisition in Brazil>> View
Lupin’s entry in Russia with acquisition in Brazil >> View