Par Pharmaceuticals builds up generics business

Par Pharmaceuticals (NYSE: PRX) revved up its generic drugs category with two substantial acquisitions in the third quarter as several companies seek to benefit from the imminent expiration of exclusive patents.In August, the Woodcliff Lakes, New Jersey drug company agreed to acquire Anchen Pharmaceuticals, a privately-held company focused on developing and commercializing extended release and niche generic products, for $410 million in cash. It expects the deal to be completed by the end of the year.

Advertisement In a conference call earlier this year, Paul Campanelli, president of the company's generics division, said the deal "will expand our portfolio of high-value market products, including sustainable products with longer life cycles." Last month Par acquired rights to three products from Teva Pharmaceuticals (NASDAQ: TEVA) in connection with Teva's $6.8 billion acquisition of Cephalon in Frazer, Pennsylvania: fentanyl citrate lozenges, a generic version of Actiq, and cyclobenzaprine ER capsules, the generic version of Amrix, and modafinil tablets, the generic version of Provigil. In October, Par began shipping all strengths of olanzapine orally disintegrating tablets, the generic version of Eli Lilly's (NYSE: LLY) Zyprexa Zydisto. The company had $77.6 million loss for the third quarter partly due to acquisition and restructuring costs on revenues of $672.5 million. Watson Pharmaceuticals (NYSE: WPI) is poised to launch a generic version of Lipitor once Pfizer's (NYSE PFE) patent on the blockbuster drug expires this month. Teva is expecting to release a generic form of Lilley's schizophrenia drug Zyprexa in the fourth quarter in a move it believes will boost sales.