Par Pharmaceutical Companies, Inc. (PRX) announced Tuesday that it entered into a definitive agreement to acquire privately-held Edict Pharmaceuticals, an India-based developer and manufacturer of generic pharmaceuticals, for up to $37.6 million in cash and Par’s repayment of certain additional pre-close indebtedness. The transaction is expected to be accretive in 2013.
Edict Pharmaceuticals is a Chennai, India-based developer and manufacturer of solid oral dosage generic pharmaceuticals with a highly-skilled research and development team and strong product pipeline focused on niche first-to-file, first-to-market formulations. Edict currently has seven ANDAs filed with the U.S. FDA and one ANDA filed in the name of a development partner with an additional 14 products in development.
Paul V. Campanelli, President of Par Pharmaceutical, said the transaction enhances Par’s already successful research and development infrastructure and demonstrates Par’s intention to continue to build out its product development platform. Also, Edict’s facility adds significant operational capacity and provides business continuity protection for its Spring Valley, NY facility, said Campanelli.
Mr. Campanelli further commented that Par has a long-standing relationship with Edict’s CEO, Muthusamy ‘Samy’ Shanmugan, having collaborated on numerous current Par products. He shares Par’s highly entrepreneurial culture and cost-efficient approach to product development, said Campanelli.
The acquisition is subject to customary conditions and approvals. Par expects to complete the transaction by the end of the year.
Par Pharmaceutical Companies, Inc. is a US-based specialty pharmaceutical company. Through its wholly-owned subsidiary’s two operating divisions, Par Pharmaceutical and Strativa Pharmaceuticals, it develops, manufactures and markets high barrier-to-entry generic drugs and niche, innovative proprietary pharmaceuticals.
Founded as a generics products company in 1978, Par Pharmaceuticals today includes two divisions: Par Pharmaceutical, its generic drug division and Strativa Pharmaceuticals, its proprietary products division, launched in 2005.
Par Employs more than 600 professionals in offices in Woodcliff Lake, New Jersey (Corporate Headquarters), Spring Valley, New York (Research & Development, Manufacturing, Supply Chain, and Account Services), Suffern, New York (Distribution) and Hauppauge, New York (Manufacturing).
It conducts manufacturing in the United States and markets and/or licenses more than 85 prescription drug product families and has more than 50 currently marketed products.
Edict Pharmaceuticals Private Limited is a 100% Export Oriented Unit (EOU) engaged in “Product Development and Manufacturing” of Generic pharmaceutical formulations for United States of America (USA) and other Regulated markets.
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