Akorn to acquire certain assets of Kilitch Drugs in India
Deal will expand capabilities and manufacturing of sterile injectables
US niche generic pharmaceutical company Akorn has entered into an agreement to acquire certain assets of Kilitch Drugs (India) (KDIL), a leading contract manufacturer of sterile injectables in India, as well as certain assets of NBZ Pharma, for approximately US$52m (€38.9m) in cash and future contingent payments of up to $6m (€4.5m) based on the achievement of certain milestones and financial targets.
The target assets consist of KDIL’s plant in Paonta Sahib in Himachal Pradesh, India, along with the associated contract manufacturing and international business, and certain product transfers from KDIL’s Navi Mumbai plant and NBZ Pharma. The acquisition is subject to local regulatory approvals and certain customary conditions and consents, but is expected to close within the next 90 days.
The acquisition includes five high quality cGMP manufacturing sites designed for regulated markets with approximately 21,400m2 of manufacturing space located on more than 5.7 hectares of land. Two of the sites are completed and operational, and the other three are under construction.
The first operational plant has the capabilities to manufacture general injectables and is being expanded to increase capacities and add ophthalmic capabilities. The second has the capabilities of manufacturing cephalosporins in various forms, including oral liquids and solids, as well as dry syrups and dry powder injectables.
The three plants under construction are expected to be operational in 2012 and will have the capabilities to make carbapenems, hormonal and oncology-related injectables.
Among the benefits to Akorn will be diversified sterile injectable packaging configurations, such as liquid, dry powder, lyophilised, and prefilled syringes, access to the fast growing Indian market, and active and pending product registrations in more than 25 countries in Latin America, Asia, Middle East, Europe and Africa.
‘We are excited about this acquisition as it expands both our capacities and capabilities for sterile injectables,’ said Raj Rai, chief executive officer. ‘With this platform we plan to offer a speed to market, high quality, comprehensive and cost effective solution to our domestic customers, specifically for critical care products in categories such as anti-infectives and cancer that are consistently in short supply.
‘Strategically, we will also establish a global footprint giving us access to the fast growing emerging markets. Finally, this acquisition provides us with a road map to become a leader in the generic injectable market.’
