Kilitch Drugs (India) today said it had signed an agreement to sell its business of research, development manufacturing and marketing of generic pharma formulation products of its Paonta Sahib plant in Himachal Pradesh to US-based Akorn Inc.
The agreement has been signed for cash consideration of about Rs 200 crore.
Nasdaq-listed Akorn Inc is a niche generic pharmaceutical company.
"Akorn Inc will acquire the certain assets of Kilitch Drugs on a slump sale through a wholly-owned subsidiary incorporated in India for a cash consideration of Rs 188 crore. Kilitch will also transfer certain additional products to Akorn, which are currently being manufactured at its Mumbai plant and were planned to be shifted to Himachal unit, for an additional cash consideration of Rs 11.75 crore," Kilitch said in a statement here.
As part of the deal, Akorn will acquire five high quality current good manufacturing practice (cGMP) manufacturing sites, two completed and operational plants and three under construction ones.
The first operational plant has the capabilities to manufacture general injectables and is under expansion to add ophthalmic capabilities.
The second one has the capabilities of make cephalosporins in various forms such as oral liquids & solids as well as dry syrups and dry powder injectables, the release said.
The three plants under construction, expected to be operational in 2012, will have the capabilities to make carbapenems, hormonal and oncology related injectables, an Akorn statement said.
