NYSE-listed Par Pharmaceutical Companies Inc. is acquiring privately held Edict Pharmaceuticals, a Chennai-based developer and manufacturer of generic pharmaceuticals, for up to $37.6 million (Rs 170 crore) in cash, in addition to repayment of certain additional pre-close indebtedness.
Edict Pharmaceuticals is a developer and manufacturer of solid oral dosage generic pharmaceuticals, with a highly skilled research and development team on board and a strong product pipeline focused on niche first-to-file, first-to-market formulations. Currently, Edict has seven ANDAs filed with the US FDA and one ANDA filed in the name of a development partner, with an additional 14 products in development.
The acquisition is subject to customary conditions and approvals and Par expects to complete the transaction by the end of the year. The transaction is expected to be accretive for Par Pharmaceuticals in 2013.
Edict’s plant is located at Kelambakkam, outside Chennai. It is a 100 per cent export-oriented unit with products targeted at international regulated markets like the USA. According to its website, the company has the capacity to make 1 million tablets a day and its planned capacity is 6 million tablets and 1.5 million capsules per day.
The company was co-founded by two individuals – Jaganathan Jayaseelan and Muthusamy ‘Samy’ Shanmugam. Shanmugam, a pharma scientist with working experience in the USA, is the CEO of Edict Pharmaceuticals and manages R&D and business development. Jayaseelan, who had worked in the sales and marketing department of various Indian pharma companies, is the president of Edict and looks after corporate affairs, day-to-day operations and finance.
Commenting on the acquisition, Paul V. Campanelli, president of Par Pharmaceutical, said, “Edict’s facility adds significant operational capacity and provides business continuity protection for our Spring Valley, NY, facility.”
Par Pharmaceutical is a US-based specialty pharma 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.