India's Cipla has lagged behind its compatriots in challenging U.S. drugmakers on their own turf, currently getting less than 10% of its revenues from the lucrative U.S. market. The company is making moves to change that equation, announcing a small deal on Friday to buy two U.S. focused generics companies.
Indian generics maker Cipla has agreed to buy two U.S.-based companies, InvaGen Pharmaceuticals and Exelan Pharmaceuticals, in a total transaction valued at $550 million, making something of an unexpected play from its emerging market expansion focus.
GlaxoSmithKline isn't just going to sit back and let Cipla's generic stomp all over asthma blockbuster Advair--known as Seretide outside the U.S.--in India. It's turning to a strategy it's used elsewhere to help its aging med compete, and that's price-cutting.
A slew of senior executives at the Ranbaxy unit of India's Sun Pharmaceutical and Cipla are likely polishing up their Linkedin profiles and calling head hunters as something of a cull sweeps through management ranks at those companies and wider, highlighting deep changes in the industry.
Acquisitions that help Cipla grow in emerging markets are on the cards as the Indian drugmaker looks to expand into new geographies, Chief Executive Subhanu Saxena told the Reuters news agency in an interview this week.
India's Cipla and Lupin made first-round bids for the U.S. generics business of Belgium's UCB, Kremers Urban Pharmaceuticals, according to sources cited by Bloomberg, showing that domestic players are eagerly looking abroad to boost sales.
After having to call off a $1.5 billion deal last year to sell its U.S.-based generics business, Belgium's UCB has new bidders for the unit that reportedly includes India's Cipla and Lupin.
Belgium's UCB has a generics operation in the U.S. with a 400,000-square-foot-manufacturing facility that it has been trying since last year to unload, and India's Cipla and Lupin are both reportedly in the running to buy it.
Serum Institute of India and compatriot Cipla have inked a pact to market a flu vaccine.
Cipla announced a drug recall of its asthma inhalant levalbuterol from the U.S. market following an FDA warning, and Wockhardt withdrew about a dozen drugs on manufacturing concerns at two of its plants in India.