Par Pharmaceutical Companies, Inc. announced
today 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.
Commenting on the acquisition, Paul V. Campanelli, President
of Par Pharmaceutical, said, “This transaction enhances Par’s already successful
research and development infrastructure and demonstrates Par’s intention to
continue to build out our product development platform. Also, Edict’s facility
adds significant operational capacity and provides business continuity
protection for our Spring Valley, NY facility.”
Mr. Campanelli continued, “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. I am very excited to
welcome Samy and his experienced and dedicated team to Par.”
The acquisition is subject to customary conditions and
approvals. Par expects to complete the transaction by the end of the year.
