Amneal to acquire 98% stake in Kashiv Specialty Pharmaceuticals for $70M upfront

Amneal Pharmaceuticals Inc. is acquiring a 98% stake in fellow New Jersey-based generics manufacturer Kashiv Specialty Pharmaceuticals LLC, a unit of Kashiv BioSciences LLC.

Bridgewater, N.J.-based Amneal's subsidiary Amneal Pharmaceuticals LLC will pay $70 million up front at the closing of the deal and $30 million cash after one year following the execution of the agreement.

Piscataway, N.J.-based Kashiv is eligible to receive up to an additional $8 million in contingent payments upon the achievement of certain regulatory milestones. Amneal has also agreed to pay Kashiv royalty payments on annual net sales for certain pharmaceutical products.

Kashiv Specialty is focused on developing generics, such as contraceptive Eluryng and menopause therapy Yuvafem; drug delivery platforms; and novel drugs.

The acquisition aligns with Amneal's growth strategy, and the company expects it to deliver substantial value for its specialty and generics businesses. The transaction will double Amneal's pipeline of branded neurology and endocrinology programs and position it to launch at least one specialty product per year beginning in 2023, said Amneal's co-CEO, Chirag Patel, in a Jan. 12 news release.

Amneal will finance the transaction with cash on hand and the deal is expected to close in the second quarter of 2021, subject to the customary closing conditions, including U.S antitrust clearance.

RBC Capital Markets LLC is financial adviser, while Shearman & Sterling LLP is legal counsel to the conflicts committee of Amneal's board, which evaluated the transaction. L.E.K. Consulting LLC and The Weinberg Group Inc. are consulting advisers to the committee.

Holland & Knight LLP is Kashiv's legal counsel.