US generics group Par Pharmaceuticals is to be acquired for $1.90 billion by the private equity group TPG.

Under the terms of the deal, Par stockholders will receive $50.00 in cash for each share they have. This represents a premium of 37% over the closing price on July 13, the last full trading day before the deal was announced.

Par reported revenues of $271.5 million and a loss from continuing operations of $28.7 million for the first quarter. Growth was driven by authorised generics of two AstraZeneca products - the beta blocker Toprol XL (metoprolol) and Entocort EC (oral budesonide) for Crohn’s disease.

Patrick LePore, Par's chief executive, said TPG's "substantial resources and healthcare experience" means the firm can "continue to invest in its future long-term growth". Todd Sisitsky, a partner at the investment firm, claimed that Par "is positioned to benefit from the strong macro trends of a greater focus on cost-effective healthcare solutions and the increasing demands from an aging population".

However, the deal may not be done and dusted yet. Under the terms of the agreement, Par may look for superior offers up to August 24, and the board and its advisors say they "will actively solicit acquisition proposals", even though they have unanimously approved the TPG pact.

UBS analyst Ami Fadia believes other bids could comfortably top TPG’s offer. In an investor note, she said "this business can easily generate cash flows of about $200 million to $250 million a year, which we value at closer to $60 a share in the hands of a strategic buyer who would be able to drive synergies".

Ms Fadia believes that the most interested parties would likely be foreign generic drugmakers looking to expand into the USA.