The ongoin US shortage of sterile injectables presented a “great opportunity” for Par according to spokesman Stephen Mock, who told Outsourcing-pharma.com the firm “has been looking to move into other dosage forms for a while."
New Jersey-based JHP manufactures and sells branded and generic aseptic injectable pharmaceuticals in hospital and clinical settings, and provides contract manufacturing services for pharma companies worldwide. The company currently markets 14 specialty injectable products, including Aplisol and Adrenalin.
JHP’s 170,000 square feet sterile manufacturing facility in Rochester, Michigan, can manufacture small-scale clinical through large-scale commercial products, and also includes a 44,000 square foot warehouse, as well as a new lab that just opened last year that’s 40,000 square feet, Mock said.
The acquisition for Par follows its acquisition of Irvine, California-based Anchen Pharmaceuticals in 2013 “because of their demonstrated expertise in modified and controlled release,” Mock said.
Par now joins a host of pharma companies looking to get into the highly lucrative injectables business as shortages persist worldwide. Last year, Mylan purchased India-based Agila for $1.6bn as part of a deal that will expand its product capacity by over 50 times. Deals like these are especially important in the US market, where companies like Hospira, Ben Venue and Teva continue to deal with regulatory violations at their facilities.
Mock mentioned the decision by Teva to sell its struggling facility in Irvine, California, noting that “just because you’re positioned” in the US injectables market, “doesn’t mean that it’ll be easy to execute.” He also said JHP’s Michigan facility has a good regulatory track record with recent inspections.
“Par has deep experience in generic pharmaceuticals and is ideally suited to drive the next stage of growth and expansion of JHP,” said Stuart Hinchen, co-founder and CEO of JHP. “Par and JHP also share a dedication to quality and a common entrepreneurial culture.”
Upon closing, JHP will become a wholly-owned subsidiary of Par. The acquisition is subject to customary conditions and approvals. Par expects to complete the transaction in the first quarter 2014.