Par Pharmaceutical to Acquire Edict Pharmaceuticals
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.