Cipla is all set to expand its portfolio. And this includes buying of the American business of Hyderabad-based Hetero Drugs. Country’s third-largest drug maker will buy Invagen and Camber, Hetero's wholly owned subsidiary, for about $550 million.
Cipla's efforts to expand its beachhead in the US suffered a setback recently after it lost out to Lannett in the race to buy Kremers Urban, the generics business of Belgian drugmaker UCB.
While the spokesperson of Hetero stayed quite on the issue, he did say, "As a pharmaceutical company, we are constantly in discussions with multiple parties on potential collaboration opportunities - in line with our aspiration to drive access and ensure availability of high-quality, affordable medicines."
As Indian rivals of Cipla are quite present in the US, it didn’t want to lose out on opportunities. Dr YK Hamied founded company was holding talks on the plan since a year.
With the Invagen and Camber purchase, Cipla will also get access to a manufacturing facility and approvals to treat a variety of illnesses - from HIV, hypertension and heart diseases to depression drugs such as acyclovir, amlodipine, escitalopram. Hetero received a boost recently when it secured the approval to make aripiprazole, a blockbuster drug used to treat schizophrenia and bipolar disorder.