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Zydus' US arm to buy Nesher Pharma

20 Jun 2011 Evaluate

Zydus Pharmaceuticals USA Inc will acquire US-based pharmaceutical company Nesher Pharmaceuticals Inc through its subsidiary Zynesher Pharmaceuticals USA LLC for an undisclosed sum. Zynesher has entered into an agreement to acquire the assets of Nesher. Nesher operates as the generic subsidiary of KV Pharmaceutical based at St. Louis, Missouri, in the US.
 
Nesher has considerable expertise in niche therapies which have development or production barriers, such as controlled release medications or drug enforcement administration (DEA) controlled substances. The broad-based assets purchase agreement includes assets and assumption of certain liabilities, Nesher’s existing and pipeline Abbreviated New Drug Application (ANDAs), certain manufacturing facilities and a full fledged research and development laboratory.
 
With this, Zydus will now be able to manufacture and distribute generic controlled substances in the US market, which otherwise cannot be imported. The market for controlled substances medications in the US is estimated at $7 billion. Nesher has an ANDA pipeline comprising eight existing filings and five products under development. These products resent a tremendous market potential as they belong to high growth, niche segments which have a combined estimated market size of over $ 2.1 billion. The agreement also encompasses supply and technical services agreements by which certain products of KV Pharmaceutical will be manufactured by Zynesher Pharmaceuticals USA LLC.

Zydus Wellness Share Price

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