Lupin acquires Gavis to grow U.S. generic business
MUMBAI — Lupin announced Thursday that it will acquire Gavis Pharmaceuticals and Novel Laboratories in a $880 million, cash- and debt-free transaction. Both Lupin and Gavis' boards of directors unanimously approved the vote.
Through the acquisition, Lupin will expand its reach in the U.S. generics market, as well as in dermatology, controlled substance products and other high-value and niche generics.
Gavis — a privately owned company specializing in formulation development, manufacturing, packaging, sales, marketing and distribution of pharmaceuticals products — offers Lupin a U.S.-based research and development organization that will complement Lupin's Coral Springs, Fla., inhalation R&D center.
"This is a pivotal acquisition for Lupin, as it aligns with our goal to expand and deepen our U.S. presence,” Lupin CEO Vinita Gupta said. “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. Gavis’ capabilities and pipeline are an excellent complement to Lupin.”
Gavis’ New Jersey based manufacturing facility will be Lupin's first manufacturing site in the United States. With sales reaching $96 million in fiscal 2014, Gavis has more than 250 New Jersey-based employees.
Gavis has 66 abbreviated new drug application filings pending approval with the FDA, in addition to more than 65 products under development. About 72% of these filings pending approvals represent niche dosage forms.
The combined company will own a portfolio of 101 in-market products and 164 cumulative filings pending approval, in addition to products under development for the United States. The acquisition creates the fifth-largest portfolio of ANDA filings with the FDA.
"This is a time of globalization for the specialty pharmaceutical industry and Gavis is well positioned to capitalize on this exciting opportunity,” Dr. Veerappan Subramanian, founder and CEO of Gavis, said. “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 U.S. specialty space and will significantly enhance Lupin's U.S. platform."