August 24, 2011 / 11:21 AM / 8 years ago

UPDATE 2-Par Pharma to buy generic drugmaker for $410 mln

* To buy privately held Anchen Pharma

* Par sees completing deal by this year-end

* Expects deal to add to 2011 adjusted earnings (Adds deal details, background, stock price)

Aug 24 (Reuters) - Par Pharmaceutical Cos Inc said it will buy privately held Anchen Pharmaceuticals for $410 million in cash to expand its generic drugs portfolio.

Generic drugmakers, including Teva , Mylan and Watson Pharmaceuticals , are scrambling for deals to add to their portfolios as they get ready to ride a wave of patent expirations that are about to hit the industry.

Par expects to complete the deal by the end of 2011. It sees the deal adding immediately to its 2011 earnings, excluding special items.

The company plans to finance the transaction with cash on hand and a $350 million term loan.

Irvine, California-based Anchen is a specialty pharmaceutical firm that is focused on developing niche generic products and currently has five marketed products.

Anchen expects to launch 8-10 niche generic products over the next two years, Par said in a statement.

Par received a fairness opinion from J.P. Morgan in connection with the deal, while Anchen was advised by Jefferies & Co.

This marks Par’s second buy this year, after its $37.6 million cash deal with India-based Edict Pharmaceuticals — another private maker of niche generic products.

Par also has a branded drug division, Strativa Pharmaceuticals, which underwent a job cut recently in order to focus on two drugs — a vitamin B12 nasal spray and an appetite loss drug.

Par shares closed at $29.21 on Tuesday on the New York Stock Exchange. (Reporting by Esha Dey in Bangalore; Editing by Maju Samuel)

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