Mumbai, July 23 (IANS) Indian pharmaceuticals company Lupin Limited on Thursday said it has entered into a definitive agreement to acquire US-based privately-held company Gavis Pharmaceuticals LLC and Novel Laboratories Inc.

The transaction, valued at $880 million, is subject to “certain closing conditions”.

“This is a pivotal acquisition for Lupin as it aligns with our goal to expand and deepen our US 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,” Lupin CEO Vinita Gupta said in a statement.

Gavis’s capabilities and pipeline are an excellent complement to Lupin and the acquisition will accelerate Lupin’s entry into niche areas like controlled substances and dermatology, she said.

“The acquisition is expected to be accretive to the earnings from the first full year of operations,” she said.

The statement said the acquisition enhances Lupin’s scale in the US generic market and also broadens Lupin’s pipeline in dermatology, controlled substance products and other high-value and niche generics.

“Gavis brings to Lupin a highly skilled US based research and development (R&D) organization which would complement Lupin’s Coral Springs, Florida, inhalation R&D center. Gavis’s New Jersey based manufacturing facility will become Lupin’s first manufacturing site in the US,” the company said.

Gavis is a New Jersey-based 250-employee strong company specializing in formulation development, manufacturing, packaging, sales, marketing, and distribution of pharmaceuticals products recording a sales of $96 million in 2013-14.

Post a successful acquisition, the combined portfolio of these firms will amount to 101 in-market products and 164 cumulative filings pending approvals.

“The acquisition creates the 5th largest portfolio of ANDA (Abbreviated New Drug Application) filings with the US FDA, addressing a $63.8 billion market,” the statement said.