Amneal Pharmaceuticals LLC, founded by two Indian American entrepreneurs and based in Paterson, New Jersey, and Impax Laboratories Inc., with headquarters worldwide, Oct. 17 announced that they have entered into a definitive business deal to merge the two companies in an all-stock transaction.
As a result of the merger, Amneal Holdings members will own approximately 75 percent and Impax shareholders will own approximately 25 percent of the new company's pro forma shares on an as converted basis.
The combined company will be named Amneal Pharmaceuticals Inc. and boasts it will have a robust generic pharmaceuticals business that will rank as the fifth largest in the United States by gross revenue and a growing, high-margin specialty franchise, according to an Impax news release.
In addition to its broad existing commercial product portfolio, the combined organization will have a diverse and differentiated pipeline with more than 300 products either filed with the FDA or in active stages of development, a foundation for international expansion with select commercial presence in the United Kingdom and Germany, and cost-efficient global manufacturing and development capabilities in all dosage forms, it said.
The transaction is expected to enhance the combined organization's competitive position and allow for continued success in an evolving generics market.
“In the 15 years since our family founded Amneal, we have established the company as a leader in the U.S. generic pharmaceuticals industry, and today marks an important milestone in these efforts,” said Chirag Patel, co-founder, co-chief executive officer and co-chairman of Amneal.
“This transaction combines the complementary strengths of both Amneal and Impax to create an even stronger company with the diversification, capabilities and resources to deliver enhanced value for patients, new opportunities for our collective employees and increased growth and value creation for shareholders," Patel added.
“We are excited to join with Impax to create one of the most dynamic companies in the pharmaceutical industry," said Chintu Patel, co-founder, co-CEO and co-chairman of Amneal. "This combination will help us achieve our long-term goals of providing greater access to safe and affordable medicine for people around the world, while also positioning us for continued success."
Impax president and CEO Paul Bisaro said the merge will deliver on several growth objectives for his company.
“Our combined portfolio will be supported by global, high-quality development and manufacturing capabilities,” Bisaro said in a statement. “The anticipated strong cash flows from the combined company allow for the repayment of debt and the ability to meaningfully invest in our business.”
The new company, to be based in Bridgewater, N.J., will be led by an experienced team with a proven track record in driving strong organic growth and successfully integrating acquisitions, according to the news release.
Amneal's founders, the Patels, will serve as co-chairmen of the combined company's board of directors. Bisaro will serve as CEO of the combined company and Impax chief financial officer and senior vice president Bryan Reasons will serve as CFO.
J.P. Morgan served as financial adviser to Amneal, and Latham & Watkins was its legal adviser. Morgan Stanley was financial adviser to Impax, and Sullivan & Cromwell was its legal counsel. Bank of America Merrill Lynch also advised Impax.