Biopharmaceutical company Suven Life Sciences Ltd has signed an agreement to buy the assets of US-based Aceto Corporation’s Rising Pharmaceuticals and its subsidiaries.
Hyderabad-based Suven has agreed to pay gross cash proceeds of $15 million (Rs 105 crore) for the assets, Aceto said in a statement. It will also take on the operating liabilities and customer obligations related to the acquired business on a cash-free and debt-free basis.
Aceto, which filed for bankruptcy protection last month, said the "stalking horse" agreement that it signed with Suven is subject to a court-approved bidding process under the US Bankruptcy Code. A stalking horse agreement refers to an initial bid for a bankrupt company's assets and sets the lower limit in a bankruptcy auction.
Suven Life , which provides contract research and manufacturing services (CRAMS) to global life sciences companies, said it entered into the agreement through Shore Suven Pharma Inc.
Shore Suven is a joint venture between Suven Life and US-based Shore Pharma Investments, LLC.
“This potential acquisition of Rising’s assets would transform Shore Suven Pharma into a strong US generic pharmaceutical company,” said Venkat Jasti, CEO and chairman of Suven Life. Rising’s extensive product portfolio along with Suven's bulk drugs and finished-dose manufacturing capabilities will help the company to better serve its US customers, he added.