U.S. Generics Shuffle

The Belgian drugmaker UCB will sell its U.S. generics business, Kremers Urban Pharmaceuticals, to Philadelphia-based Lannett for $1.2 billion. Under the deal, UCB is eligible to receive payments for methylphenidate HCl Extended Release, a generic version of Janssen’s central nervous system drug Concerta, in the event that the product’s bioequivalence rating is restored. Kremers won FDA approval in 2013, but last year FDA requested data to confirm its therapeutic equivalence to Concerta. Lannett says the purchase will roughly double its annual sales to $800 million, add a strong R&D team, and bring the potential for advancing its active pharmaceutical ingredients business. Meanwhile, the Indian drug firm Cipla will acquire the U.S. generic drug maker InvaGen Pharmaceuticals and Exelan Pharmaceuticals, a marketing firm that sells InvaGen products to government buyers, in a deal valued at $550 million. InvaGen has 32 marketed products and about 40 applications pending FDA approval. It operates a plant in Hauppauge, N.Y.