March 12: Indian biopharmaceutical company Suven Life Sciences has agreed on an asset purchase pact with the US Company Aceto Corporation’s Rising Pharmaceuticals.
With this, the company can buy the assets of the America Company via its joint venture partner Shore Suven Pharma Inc. Suven Life Sciences and Shore Pharma Investments LLC of the US together formed the joint venture, Shore Suven Pharma Inc.
As per reports, the Indian pharmaceutical company has entered into stalking horse asset purchase agreement through its joint venture partner Shore Suven Pharma Inc. Suven Life in a filling stated that they will purchase the assets of the American company as well as its subsidiaries.
A stalking-horse asset purchase agreement is where the bid is placed on the assets of a bankrupt company. According to the filling, the transaction is obliged to follow the court-approved bidding process which is placed under Section 363 of US Bankruptcy Code.
Reports are that Shore Suven Pharma will become one of the strongest US generic pharmaceutical companies after the acquisition of Rising’s assets. With the inclusion of the product portfolio with the company’s current portfolio, the company will be able to serve the US customers even better than it is doing now.
Reports quoted Vimal Kavuru, who will serve as CEO of Shore Suven Pharma as saying that the company will prioritize the opportunity to team up with suppliers and employees of Rising, thereby helping them assure continuity in the product supply for their customers.
He went on to say that the excellent generic pharmaceutical management team at the facility will enable a smooth transition while making the best use of the value of the assets.