Zydus Cadila to acquire two ANDAs from Teva Pharmaceutical Industries1 min read . Updated: 20 Jun 2016, 11:54 PM IST
While the financial details were not disclosed, the estimated market size of the two ANDAs is nearly $200 million
Drug maker Cadila Healthcare Ltd, also known as Zydus Cadila, has acquired two abbreviated new drug applications (ANDA) from Teva Pharmaceutical Industries Ltd that are being divested by the Israel-based company as a precondition to its acquisition of Allergan Plc.’s generic business.
“The acquisition of these ANDAs is contingent on the closing of the Teva-Allergan generics transaction and approval by the US Federal Trade Commission (FTC)," Zydus said in a statement to the stock exchanges on Monday.
The financial details of the transaction were not disclosed.
The company said the two ANDAs have been acquired by its subsidiary Zydus Worldwide DMCC and that the transaction will be financed through the group’s internal accruals.
The acquired portfolio comprises an already-commercialized ANDA and one pipeline ANDA, which is a transdermal patch. The estimated market size of the two ANDAs put together is nearly $200 million, Zydus said.
“This is an important acquisition which will help Zydus expand its existing portfolio in the US and strengthen its pipeline of complex generic products," said Pankaj R. Patel, chairman and managing director of Zydus Group.
Patel said the company has made significant investments in the transdermal manufacturing technology and had also acquired a transdermal manufacturing facility in the US a few years ago.
“Zydus is upbeat about the growth potential in the US and will continue to pursue more inorganic opportunities in the US market," Patel said.
During the year ended March, Zydus posted revenues of ₹ 9,837.6 crore; the US generics business grew 10% and contributed about 40% of total revenues.
Several Indian companies are in the race to buy dozens of overlapping products that Teva had put up for sale to meet antitrust norms of the US FTC for approval of its $40.5 billion acquisition of Allergan’s generics business.
Earlier this month, India’s second largest drug maker, Dr Reddy’s Laboratories Ltd, said it will acquire a portfolio of eight ANDAs from Teva for $350 million.
On Monday, shares of Cadila Healthcare gained 0.85% to ₹ 316 on the BSE, while the benchmark Sensex was up 0.91% to 26,866.92 points.