On April 5, 2021, Amneal Pharmaceuticals, Inc. (“Amneal”) and Kashiv BioSciences LLC (“Kashiv”) announced that Amneal’s wholly-owned subsidiary, Amneal Pharmaceuticals LLC, has completed its acquisition of a 98% interest in Kashiv’s wholly-owned subsidiary, Kashiv Specialty Pharmaceuticals, LLC (“Kashiv Specialty”). According to the release, Amneal has a portfolio of more than 250 generic medicines and is expanding its portfolio to include complex dosage forms including biosimilars in a broad range of therapeutic areas, and Kashiv Specialty is focused on the development of complex generics, innovative drug delivery platforms and novel 505(b)(2) drugs.
As previously announced, Amneal will pay (i) an upfront purchase price comprised of a cash payment of $70 million at the closing of the acquisition, subject to certain customary purchase price adjustments, and (ii) a cash payment of $30 million at the one-year anniversary of the execution of the purchase agreement. Kashiv is also eligible to receive up to an additional $8 million in contingent payments upon the achievement of certain regulatory milestones. In addition to these contingent payments, Amneal has agreed to pay Kashiv certain royalty payments equal to an escalating percentage (from high single-digits to mid double-digits, depending on the net sales amount) of aggregate annual net sales for certain pharmaceutical products.