The deal, which is the largest buyout by an Indian company, being worth US$880 million, has already been unanimously approved by the Boards of Directors of both Lupin and Gavis. The acquisition will increase Lupin’s presence in the US generics market and provide Lupin with its first manufacturing site in the US in the form of the New Jersey-based manufacturing facility of Gavis. The deal will also broaden Lupin’s pipeline in dermatology, controlled substance products and other high-value and niche generics.

Gavis recorded sales of US$96 million in 2014 and currently has 66 abbreviated new drug applications (ANDA) pending approval with the US Food and Drug Administration (FDA), as well as a pipeline of more than 65 products in development. To date, Gavis has filed 25 Paragraph IVs and eight first-to-file products. The pending filings address a market value of about US$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 market worth US$63.8 billion.

Acquisitions are an integral part of Lupin’s future growth strategy. The company aims to achieve a turnover of US$5 billion (approximately Rs 30,860 crore) by 2018.

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