Par Pharmaceutical to acquire Edict Pharmaceuticals in India
Strengthens r&d and adds manufacturing capacity
Par Pharmaceutical Companies, based in Woodcliff Lake, New Jersey, US, is to buy privately held Edict Pharmaceuticals, an Indian developer and manufacturer of generics for up to US$37.6m in cash.
Par, which specialises in high barrier-to-entry generics and niche pharmaceuticals, said the transaction also involves its repayment of ‘certain additional pre-close indebtedness’. The deal is expected to be accretive to earnings in 2013.
Chennai-based Edict Pharmaceuticals is a developer and manufacturer of solid oral dosage generic pharmaceuticals and has a product pipeline focused on ‘niche first-to-file, first-to-market formulations’.
The company currently has seven ANDAs filed with the US FDA, plus one filed in the name of a development partner, and a further 14 products in development.
Commenting on the acquisition, Paul Campanelli, president of Par Pharmaceutical, said that Edict's facility adds ‘significant operational capacity and provides business continuity protection for our Spring Valley, NY facility’.
He added that the company has a long-standing relationship with Edict's chief executive, Muthusamy 'Samy' Shanmugan, having collaborated on numerous current Par products.
‘He shares Par's highly entrepreneurial culture and cost-efficient approach to product development. I am very excited to welcome Samy and his experienced and dedicated team to Par,’ he said.
Par expects to complete the acquisition by the end of the year.