Suven enters asset purchase agreement to buy US-based Rising Pharmaceuticals' assets

Biopharmaceutical firm Suven Life Sciences Ltd Friday said it has entered into an asset purchase agreement to buy the assets of US-based Aceto Corporation's Rising Pharmaceuticals through its joint venture partner Shore Suven Pharma Inc. Suven Life Sciences through its joint venture partner, Shore Suven Pharma, Inc has entered into a "stalking-horse" asset purchase agreement to buy the assets of Aceto Corporation’s Rising Pharmaceuticals and Rising subsidiaries, Suven Life said in a regulatory filing.

A stalking-horse asset purchase agreement is a bid on the assets of a bankrupt company. The transaction is subject to court-approved bidding process under Section 363 of US Bankruptcy Code, the filing added. Shore Suven Pharma Inc is a joint venture between Suven Life Sciences and Shore Pharma Investments LLC of USA. "This potential acquisition of Rising's assets would transform Shore Suven Pharma into a strong US generic pharmaceutical company. Leveraging Rising's extensive product portfolio to become vertically integrated with our already world class API and finished dose manufacturing capabilities will enable us to better serve US customers," Suven Life Sciences CEO and Chairman Venkat Jasti said.

Vimal Kavuru, who will serve as CEO of Shore Suven Pharma said the opportunity to work with Rising's suppliers and employees to ensure continuity of product supply to customers in connection with this proposed integration will be the company's top priority. "We have an exceptional generic pharmaceutical management team ready to facilitate a smooth transition while maximising the value of these assets. We look forward to working towards a successful closing," he added. Shares of Suven Life were trading 0.45 per cent higher at Rs 268 apiece on BSE.

(With inputs from agencies.)