Par Pharmaceutical is to acquire Indian generic drug maker Edict Pharmaceuticals in a deal worth up to $37.6 million in cash.

Par, which  specialises in high barrier-to-entry generics and niche branded drugs, said the transaction, which also involves its repayment of certain additional pre-close indebtedness, is set to close by the end of the year and be accretive to earnings in 2013.

Edict, which develops and manufactures solid oral dosage generics, has a "strong product pipeline focused on niche first-to-file, first-to-market formulations". The Chennai-based company currently has seven Abbreviated New Drug Applications filed with the US Food and Drug Administration (plus one ANDA submitted in the name of a development partner) with an additional 14 products in development.

Par's president Paul Campanelli noted that Edict's facility adds significant operational capacity and provides business continuity protection" for our his firm's plant in New York. He added that  the company "has a long-standing relationship" with Edict's chief executive, Muthusamy Shanmugan, "having collaborated on numerous current Par products" and he shares "Par's highly entrepreneurial culture and cost-efficient approach".