Lupin Acquires Gavis to Expand US Generic Business

Pharma major Lupin Limited has acquired privately held Gavis Pharmaceuticals LLC for $880 million. The acquisition enhances Lupin’s scale in the U.S. generics market and also broadens its pipeline in dermatology, controlled substance products and other high-value and niche generics. Gavis brings to Lupin a U.S.-based R&D organization, which would complement Lupin’s Coral Springs, FL inhalation R&D center. Gavis’s NJ-based manufacturing facility will become Lupin’s first manufacturing site in the U.S.

Gavis specializes in formulation development, manufacturing, packaging, sales, marketing, and distribution of pharmaceuticals products. The company recorded sales of $96 million in 2014 and has over 250 New Jersey-based employees. Gavis currently has 66 ANDA filings pending approval with the U.S. FDA and a pipeline of over 65+ products under development. 72% of these filings pending approvals represent niche dosage forms. To date, Gavis has filed 25 Para IVs and 8 FTFs products. Gavis’s pending filings address a market value of about $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 U.S. The acquisition creates the 5th largest portfolio of ANDA filings with the U.S. FDA, addressing a $63.8 billion market.

Commenting on the acquisition, Ms. Vinita Gupta, chief executive officer, Lupin Limited, said, “This is a pivotal acquisition for Lupin as it aligns with our goal to expand and deepen our U.S. presence. Gavis has a strong track record of delivering highly differentiated products in a short time and is poised for continued strong growth as it delivers on its existing pipeline.

“Gavis’ capabilities and pipeline are an excellent complement to Lupin,” Ms. Gupta continued. “The acquisition accelerates Lupin’s entry into niche areas like controlled substances and dermatology. We are confident that Lupin’s proven commercialization capabilities, vertically integrated manufacturing operations and supply chain strengths will accelerate Gavis’s growth.”