AMRX - Amneal to buy Kashiv Bio for upfront price of $100M

Amneal Pharmaceuticals (AMRX) inks agreement to acquire a 98% interest in Kashiv BioSciences. Under the terms of the transaction, Amneal will pay an upfront purchase price of $70M at the closing of the acquisition and $30M at the one-year anniversary of the execution of the deal.Kashiv is also eligible to receive up to an additional $8M in contingent milestone payments and royalties ranging from high single-digits to mid double-digits.“With this acquisition, Amneal will gain an exciting pipeline of valuable 505(b)2 branded products primarily in neurology and endocrinology," said Chirag Patel, Co-CEO of Amneal.The transaction is expected to be financially accretive by ~$15M of adjusted EBITDA on an annualized basis due to termination of the current royalty arrangement and reallocation of historical level of R&D investment. The transaction is expected to be consummated in Q2.Shares up 3% premarket.

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Amneal to buy Kashiv Bio for upfront price of $100M