Cipla Ltd. (NSE: CIPLA) is buying InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc. in a $550 million cash deal that will give Cipla a presence in the U.S. generic drug market.

InvaGen makes generic drugs that are used in the cardiovascular, anti-inflammatory, anti-diabetic and anti-depressant areas. The Hauppauge, New York-based target has three manufacturing facilities. Exelan, based in Lawrenceville, Georgia, provides generic pharmaceutical sales and marketing services for the government.

“This investment is in line with Cipla’s strategy to grow Cipla’s share in the US pharmaceutical market,” says Cipla CEO Subhanu Saxena. The two targets have a combined revenue of about $225 miilion, for the 12 months ended June 30.

Pharmaceutical companies have been going after generic drug manufacturers so they can keep their pipelines fresh and keep up with competition. For instance, earlier in September, Lannett Co. said it will acquire Kremers Urban Pharmaceuticals Inc., the U.S. generics unit of Belgian drugmaker UCB SA, for about $1.2 billion.

Barclays plc (NYSE: BCS) and Hughes Hubbard & Reed LLP are advising Mumbai, India-based Cipla. Jefferies LLC along with Manatta Phelps & Phillips are InvaGen’s advisers.

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