Akorn, Inc. has entered into an agreement to acquire certain assets of Kilitch Drugs Ltd. (KDIL), a contract manufacturer of sterile injectables in India, and certain assets of NBZ Pharma Ltd., for approximately $52 million in cash plus future milestones payments totaling as much as $6 million. The assets include KDIL’s plant in Paonta Sahib in Himachal Pradesh, India, along with the associated contract manufacturing and international business, and certain product transfers from KDIL’s Navi Mumbai plant and NBZ Pharma. The acquisition, subject to regulatory approvals, is expected to close in the next three months.

There are five cGMP manufacturing sites with approximately 230,000 sq. ft. of space associated with the acquisition. Two plants are completed and operational and three are under construction. The first operational plant manufactures injectables and is under expansion to add ophthalmic capabilities. The second plant has the capabilities to manufacture cephalosporins in various forms such as oral liquids and solids, as well as dry syrups and dry powder injectables. The three plants under construction are expected to be operational in 2012 and will have the capabilities to make carbapenems, hormonal and oncology related injectables.

Raj Rai, Akorn’s chief executive officer, said, “We are excited about this acquisition as it expands both our capacities and capabilities for sterile injectables. With this platform we plan to offer a speed to market, high quality, comprehensive and cost effective solution to our domestic customers specifically for critical care products in categories such as anti-infectives and cancer that are consistently in short supply. Strategically, we will also establish a global footprint giving us access to the fast growing emerging markets.”