scorecardresearch
Saturday, Dec 10, 2022
Premium

Lupin to buy US firm Gavis Pharmaceuticals for $880 mn

Lupin said buying privately held Gavis would give it access to 66 generic drugs for which the New Jersey firm has sought approval.

Lupin, Lupin Pharmaceuticals, Gavis Pharmaceuticals LLC, pharma market, Lupin buys Gavis Pharmaceuticals, business news, economy news An employee of Lupin Limited works at a reception at their headquarters in Mumbai. (Source: Reuters file photo)

Lupin Ltd has agreed to buy US-based Gavis Pharmaceuticals LLC for $880 million (over Rs 5,600 crore) to increase its presence in the world’s largest pharma market.

The transaction has been unanimously approved by the boards of directors of Lupin and Gavis. Lupin said buying privately held 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 would also gain dermatology drugs, controlled substance products and other speciality generics.

Gavis Pharma was promoted by Veerappan Subramanian, a person of Indian origin and based in the US. In May 2013, Gavis had acquired around 40 per cent stake in Bengaluru’s Wintac Ltd.

[related-post]

Subscriber Only Stories
Tabla maestro Ustad Zakir Hussain on music in the time of loss and his ta...Premium
UPSC Essentials| Weekly news express with MCQs : Inequality Report 2022, ...Premium
Behind Mumbai’s unusually foul air, changes in wind patternsPremium
How BJP set its house right in Gujarat but not in Himachal PradeshPremium

Lupin chief executive officer Vinita Gupta said: “This is a pivotal acquisition for Lupin as it aligns with our goal to expand and deepen our US presence. 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’s growth.”

The acquisition enhances Lupin’s scale in the US generic market and also broadens Lupin’s pipeline in dermatology, controlled substance products and other high-value and niche generics, the Mumbai based firm said. Gavis brings a highly skilled US-based R & D organisation which would complement Lupin’s Coral Springs, Florida, inhalation R&D centre.

Gavis’s New Jersey based manufacturing facility will become Lupin’s first manufacturing site in the US, it added. “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 Lupin’s US platform,” Gavis founder and CEO V Subramanian said.

Gavis is a privately held company specialising in formulation development, manufacturing, packaging, sales, marketing, and distribution of pharmaceuticals products.

Advertisement

Meanwhile, shares of Lupin tumbled over 5 per cent after the company reported a 15.96 per cent dip in consolidated net profit for the quarter ended June 2015. The stock dipped 5.23 per cent to Rs 1,728.60 on the Bombay Stock Exchange.

First published on: 24-07-2015 at 12:00:00 am
Next Story

Rajasthan school girls protest against ‘gender bias’ in education system

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement
close