Cipla on Friday announced the acquisition of two US-based drugmakers - InvaGen Pharma and Exelan Pharma - for $550 million in an all cash transaction. Cipla shares fell after gaining over 2 per cent in morning trade.
InvaGen Pharma and Exelan Pharma posted combined revenue of over $200 million for the year ended December 2014, Cipla said in a statement to the Bombay Stock Exchange. For the last twelve months, the two drugmakers posted combined revenue of over $225 million, Cipla added.
"This acquisition, which is the second landmark acquisition in Cipla's 80 years of history, will give the company scale in the US generics market through a wide range of product portfolio in CNS, CVS, anti-infectives, diabetes as well as other value added generics," Cipla said.
Analysts were mostly positive on Cipla's large acquisitions, saying the deals will help the drugmaker expand its presence in the US, the biggest generics market for Indian drugmakers.
"Its and excellent decision... it's a well-managed company with a conservative management. The stock is a good buy for 12 months," Sudip Bandyopadhyay of Destimoney Securities.
The deal follows Lupin's planned $880 million acquisition of US generics firm Gavis, as Indian drugmakers seek to strengthen their presence in the key US market.
Market expert Avinash Gorakshakar said Cipla posted excellent numbers in the June quarter because of strong performance of Nexium, a digestive disorder medicine.
Mr Gorakshakar advised investors to buy Cipla shares from a long-term perspective.
As of 2 p.m., Cipla shares traded 0.75 per cent lower at Rs 650.7 in a market that traded 2.38 per cent lower.
InvaGen Pharma and Exelan Pharma posted combined revenue of over $200 million for the year ended December 2014, Cipla said in a statement to the Bombay Stock Exchange. For the last twelve months, the two drugmakers posted combined revenue of over $225 million, Cipla added.
"This acquisition, which is the second landmark acquisition in Cipla's 80 years of history, will give the company scale in the US generics market through a wide range of product portfolio in CNS, CVS, anti-infectives, diabetes as well as other value added generics," Cipla said.
Analysts were mostly positive on Cipla's large acquisitions, saying the deals will help the drugmaker expand its presence in the US, the biggest generics market for Indian drugmakers.
"Its and excellent decision... it's a well-managed company with a conservative management. The stock is a good buy for 12 months," Sudip Bandyopadhyay of Destimoney Securities.
The deal follows Lupin's planned $880 million acquisition of US generics firm Gavis, as Indian drugmakers seek to strengthen their presence in the key US market.
Market expert Avinash Gorakshakar said Cipla posted excellent numbers in the June quarter because of strong performance of Nexium, a digestive disorder medicine.
Mr Gorakshakar advised investors to buy Cipla shares from a long-term perspective.
As of 2 p.m., Cipla shares traded 0.75 per cent lower at Rs 650.7 in a market that traded 2.38 per cent lower.
