Par to acquire Indian generics firm

The US-based speciality pharma company Par Pharmaceutical has entered into a definitive agreement to acquire India's Edict Pharmaceuticals, a privately held developer and manufacturer of solid oral dosage generic pharmaceuticals.

Par will pay up to $37.6m in cash for the company, as well as making repayment of certain additional pre-close indebtedness.  The transaction is expected to be completed by the end of this year and to be accretive to Par's earnings in 2013.

Par was attracted to Edict largely because of the Indian company's "highly-skilled research and development team and strong product pipeline focused on niche first-to-file, first-to-market formulations," the US firm said.

Edict currently has seven abbreviated new drug applications (ANDAs) for generic products under its own name pending with the US Food and Drug Administration, as well as one ANDA filed in the US in the name of a development partner, and another 14 generic products in various stages of development.

Edict is focused entirely on developing and manufacturing products for export to the US and other regulated markets, offering "US standards at Indian costs," according to the company's promotional materials.

Par and Edict have already collaborated on a number of Par's generic products and have a longstanding working relationship, the companies noted.