Par Pharmaceutical to buy generic drug maker Anchen for $410 million

Par Pharmaceutical Cos Inc today said that it will buy privately held specialty pharmaceutical company focused on niche generic products Anchen Pharmaceuticals for $410 million in cash to expand its generic drugs portfolio.

The acquisition comes three months after the New Jersey-based company acquired privately held Edict Pharmaceuticals, a Chennai-based developer and manufacturer of generic drugs, in a $37.6 million cash deal.

The company intends to finance the transaction with cash on hand and a $350 million term loan.

Irvine, California-based Anchen is a profitable, fully-integrated pharmaceutical company with five commercialised products, 27 new drugs under approval with the US Food and Drug Administration, five of which are believed to be first-to-file, and about 26 additional products in development.

Anchen expects to launch 8-10 niche generic products over the next two years, Par said in a statement.

''Anchen has an excellent development track record and robust product pipeline, which, when combined with Par's existing capabilities and pipeline, more than doubles our product opportunities." said Patrick LePore, chairman, CEO and president of Par.