Suven Life entered into a ‘stalking-horse’ asset purchase agreement to buy the assets of Rising Pharmaceuticals and its subsidiaries.
Biopharmaceutical company Suven Life Sciences has signed an agreement to buy the assets of US-based Aceto’s Rising Pharmaceuticals and its subsidiaries through its joint venture partner Shore Suven Pharma. Suven has agreed to pay gross cash proceeds of $15 million for the assets. It will also take on the operating liabilities and customer obligations related to the acquired business on a cash-free and debt-free basis.
Suven Life, which provides contract research and manufacturing services (CRAMS) to global life sciences companies, entered into a ‘stalking-horse’ asset purchase agreement to buy the assets of Rising Pharmaceuticals and its subsidiaries, it 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 is a joint venture between Suven Life Sciences and Shore Pharma Investments of US.
“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.