Supplier News Breaks Archives
Rising Pharmaceuticals to acquire PACK Pharmaceuticals
March 31st, 2014
PORT WASHINGTON, N.Y. – Rising Pharmaceuticals plans to buy PACK Pharmaceuticals, a national marketer and distributor of generic and over-the-counter drugs, in a deal valued at $100 milion.
Aceto Corp., Rising's parent, said the agreement will advance its strategy to further expand into the finished dosage pharmaceutical business.
The company noted that Rising and PACK have similar business models. Both companies operate in collaboration with pharmaceutical development partners and networks of finished dosage form manufacturing partners, as well as focus on niche products. They also sell generic prescription products and over-the-counter pharmaceuticals to leading wholesalers, chain drug stores, distributors and mass merchants. PACK also markets directly to physicians and medical facilities under its branded generics business.
In addition, PACK has a pipeline that includes 22 Abbreviated New Drug Applications filed with the Food and Drug Administration and about 30 additional generic product candidates in varying stages of development.
"This transaction is another significant step in the strategic transformation of Aceto that we began with the acquisition of Rising Pharmaceuticals at the end of 2010. It increases our mix of pharmaceutical business, broadens our opportunities for growth and expands our margins," stated Salvatore Guccione, chief executive officer of Aceto. "The combination of PACK and Rising doubles our pipeline of generic product offerings, enhances our pool of management talent under [Rising president] Satish Srinivasan's leadership and further leverages our core competencies in sourcing, regulatory support and quality assurance. In addition to widening our product offerings to our existing customers, PACK also presents an initial entrance into the branded generics business line."
Aceto said the transaction is expected to close in the second half of April, subject to customary closing conditions and regulatory approval. Plans call for PACK's three principals to join Rising, with Bryan Aschenbrand and Chris Dungan assuming senior management roles and Dushyant Chipalkatty serving as a senior adviser.
"We are extremely pleased at the opportunity to boost Rising's growth trajectory with the addition of not only the PACK product portfolio and pipeline, but also the additional executive talent the principals of the company, Bryan, Chris and Chip, will bring to Rising," Srinivasan commented. "All three are proven pharmaceutical industry executives and will help create further opportunities for growth."