Lupin acquires Gavis Pharma for $880 million

Pharma major Lupin Limited has acquired a US-based privately held research-oriented generic company Gavis Pharmaceuticals LLC and Novel Laboratories Inc. for $880 million.

The acquisition enhances Lupin's scale in the US generic market and also broadens its pipeline in dermatology, controlled substance products and other high-value and niche generics. Gavis brings a highly-skilled R&D organisation which would complement Lupin's Coral Springs, Florida inhalation R&D centre. Gavis' New Jersey-based manufacturing facility will become Lupin's first manufacturing site in the US.

Gavis is a privately-held company specialising in formulation development, manufacturing, packaging, sales, marketing, and distribution of pharmaceuticals products. The company recorded sales of $96 million in 2013/14 and has over 250 employees based out of New Jersey. Gavis currently has 66 Abbreviated New Drug Application (ANDA) filings pending approval with the US FDA and a pipeline of over 65-plus products under development. Seventy two per cent of these filings pending approvals represent niche dosage forms. To date, Gavis has filed 25 Para IVs (challenging patents) and eight first to file (FTF)s products. Gavis' pending filings address a market value of about $9 billion. The combined company will have a portfolio of 101 in market products, 164 cumulative filings pending approval and a deep pipeline of products under development for the US. The acquisition creates the fifth largest portfolio of ANDA filings with the US FDA, addressing a $63.8 billion market.

The acquisition accelerates Lupin's entry into niche areas like controlled substances and dermatology.

Vinita Gupta, CEO, Lupin, said in a press release, "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. 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."

Dr Veerappan Subramanian, Founder and CEO, Gavis commented, "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."