Orchid to acquire Karalex Pharma

MUMBAI: The Chennai-based generic pharma major, Orchid Chemicals & Pharmaceuticals, today said it has entered into an agreement to acquire US-based Karalex Pharma through an all-cash deal for an undisclosed amount.

The acquisition is likely to be completed this month, subject to customary closing conditions.

"With this acquisition, Orchid has established its presence in the generic sales and marketing area. This acquisition will provide a strong commercial US-based sales capability to Orchid, paving the way for synergistic returns from our upcoming and long-term strategic generic pharmaceuticals pipeline comprising key first-to-file and Paragraph-IV products," Orchid Chemicals Managing Director, K Raghavendra Rao, told reporters here.

This acquisition will help the Indian generic drug-maker to directly sell its generic products in the US market. It will add USD 20-million to the company's revenue in the current fiscal year," Rao said.

This move also endows Orchid, for the first time, with a complete end-to-end coverage capability of the entire generic pharmaceutical business cycle from product development to product sales and would enable the company to internalise value.