Bridgewater-based Amneal Pharmaceuticals Inc. and Kashiv BioSciences LLC announced Jan. 12 they entered into an agreement under which Amneal Pharmaceuticals LLC , a wholly-owned subsidiary of the company, will acquire a 98% interest in Kashiv Specialty Pharmaceuticals LLC, a wholly-owned subsidiary of Kashiv BioSciences.

Amneal will pay an upfront purchase price comprised of: a cash payment of $70 million at the closing; and a cash payment of $30 million at the one-year anniversary of the execution of the purchase agreement. Kashiv is also eligible to receive up to an additional $8 million in contingent payments. Amneal has also agreed to pay Kashiv certain royalty payments.

The deal will be financed with cash on hand and is scheduled to complete in the 2Q of 2021.

“The acquisition of Kashiv Specialty aligns strongly with our Amneal 2.0 growth strategy which we expect will deliver substantial value for our Specialty and Generics businesses,” said Chirag Patel, co-chief executive officer. “With this acquisition, Amneal will gain an exciting pipeline of valuable 505(b)2 branded products primarily in neurology and endocrinology, where we have a well-established commercial infrastructure, as well as a valuable pipeline of complex generics. Additionally, the transaction enhances our R&D expertise with the addition of the Kashiv Specialty team and its impressive track record in developing complex generic products (e.g. Yuvafem and EluRyng) and innovative drug delivery technologies.”

“This transaction will double our pipeline of branded neurology and endocrinology programs and position us to launch at least one Specialty product per year beginning in 2023. It will also provide us with a robust technology platform and in-house engine for driving organic Specialty growth for years to come,” stated Chintu Patel, co-chief executive officer.